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ACCT 312 Week 2 Homework

ACCT 312 Week 2 Homework Solutions

Exercise 17-5: Determine Pension Plan assets

The following data relate to Voltaire Company’s defined benefit pension plan:

Determine the amount of pension plan assets at fair value on December 31.

Exercise 17-7: Changes in plan assets: determine cash contributions

Changes in plan assets; determine cash contributions

Pension data for Fahy Transportation Inc. include the following

Assuming cash contributions were made at the end of the year, what was the amount of those contributions?

Exercise 17-10: Determine pension expense

Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2016, Abbott and Abbott received the following information:

The expected long-term rate of return on plan assets was 10%. There was no prior service cost and a negligible net loss–AOCI on January 1, 2016.

Exercise 17-12: PBO calculations, ABO calculations, present value concepts

Clark Industries has a defined benefit pension plan that specifies annual retirement benefits equal to:1.2% × Service years × Final year’s salary

Stanley Mills was ….by Clark at the beginning of 1997. Mills is ….to retire at the end of 2041 after 45 years of service. His retirement is expect to span 15 years. At the end of 2016, 20 years after being ….., his salary is $80,000. The company’s actuary projects Mills’s salary to be $270,000 at retirement. The actuary’s discount rate is 7%.

Exercise 17-15: Pension Spreadsheet

A partially completed pension spreadsheet showing the relationships among the elements that comprise the defined benefit pension plan of Universal Products is given below. The actuary’s discount rate is 5%. At the end of 2014, the pension formula was ……, creating a prior service cost of $120,000. The expected rate of return on assets was 8%, and the average remaining service life of the active employee group is 20 years in the current year as well as the previous two years.

ACCT 312 Week 2 Homework