AC 302 Week 4 Quiz 100% Correct

AC 302  Question 5.
Question :
The projected benefit obligation is the measure of pension obligation that

Question 4.
Question :
In computing the service cost component of pension expense, the FASB concluded that

Question 3.
Question :
The accumulated benefit obligation measures

Question 2.
Question :
Presented below is information related to Jensen Inc. pension plan for 2015.

Service cost                                                                            $1,020,000
Actual return on plan assets                                                         210,000
Interest on projected benefit obligation                                           390,000
Amortization of net loss                                                                 90,000
Amortization of prior service cost due to increase in benefits           165,000
Expected return on plan assets                                                    180,000

What amount should be reported for pension expense in 2015?

 1.
Question :
On January 1, 2015, Newlin Co. has the following balances:

Projected benefit obligation           $2,100,000
Fair value of plan assets                 1,800,000
 
The settlement rate is 10%. Other data related to the pension plan for 2015 are:
Service cost                                                                                     $180,000
Amortization of prior service costs due to increase in benefits                  60,000
Contributions                                                                                      300,000
Benefits paid                                                                                      135,000
Actual return on plan assets                                                                237,000
Amortization of net gain                                                                       18,000

The balance of the projected benefit obligation at December 31, 2015 is