Use the following to answer questions 10-12: The following information for Coope

Question

Use the following to answer questions 10-12: The following information for Cooper Enterprises is given below Assets and obligations December 31.2018 Plan assets (at fair value) Accumulated benefit obligation Projected benefit obligation $600,000 1,110,000 1,200,000 Other Items Pension asset/ liability, January 1, 2018 Contributions Accumulated other comprehensive loss 30,000 360,000 503,700 There were no actuarial gains or losses at January 1, 2018. The average remaining service life of employees is 10 years. 10. What is the pension expense that Cooper Enterprises should report for 2018? A) $456,300 B) $660,000 C) $360,000 D) $503,700 11. What is the amount that Cooper Enterprises should report as its pension liablty on its balance sheet as of December 31, 2018? A) $600,000 B) $90,000 C) $1,110,000 D) $1,200,000 12. The amortization of Other Comprehensive Loss for 2018 is A) $0. B) $38,370. C) $69,000. D) $50,370.

Explanation / Answer

31.12.2018 Assets & Obligation Plan Assets (at Fair Value)     6,00,000.00 Accumulated Benefits Obligation 11,10,000.00 Projected Benefits Obligation 12,00,000.00 Other Items Pension Asset/liability        30,000.00 Contribution     3,60,000.00 Accumulated other comprehensive loss     5,03,700.00 Average Life = 10 year 10 PENSION EXPENSE Plan Assets (at Fair Value) 600000 Less: Pension Asset/liability Add: Contribution 360000 Less: Accumulated other comprehensive loss     5,03,700.00 Pension Expense     4,56,300.00 ANSWER IS A)456300 11 PENSION LIABILITY Projected Benefits Obligation 1200000 Less: Plan Assets (at Fair Value) 600000 PENSION LIABILITY AS ON 31ST MARCH 600000 ANSWER IS A)600000 13 AMORTIZATION OF OTHER COMPREHENSIVE LOSS (Accumulated other comprehensive loss- 10% of Projected Benefits Obligation)/10 years =(503700-10%*1200000)/10 =$38370 ANSWER IS B)38370

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.