AC 302 Week 5 Quiz 100% Correcct

Question 5.
Question :
According to the FASB, recognition of a liability is required when the projected benefit obligation exceeds the fair value of plan assets. Conversely, when the fair value of plan assets exceeds the projected benefit obligation, the Board

Question 2.
Question :
The following information for Cooper Enterprises is given below:
                                                                                                  December 31, 2015
Assets and obligations
         Plan assets (at fair value)                                                               $400,000
         Accumulated benefit obligation                                                         740,000
         Projected benefit obligation                                                              800,000
Other Items
         Pension asset / liability, January 1, 2015                                            20,000
        Contributions                                                                                   240,000
         Accumulated other comprehensive loss                                            335,800

There were no actuarial gains or losses at January 1, 2015. The average remaining service life of employees is 10 years.

What is the amount that Cooper Enterprises should report as its pension liability on its balance sheet as of December 31, 2015?

Question 3.
Question :
Huggins Company has the following information at December 31, 2015 related to its pension plan:

Projected benefit obligation                                   $4,000,000
Accumulated benefit obligation                               3,200,000
Plan assets (fair value)                                           4,350,000
Accumulated OCI (PSC)                                           300,000
 
            The amount of pension asset / liability Huggins Company would recognize at December 31, 2015 is

Question 4.
Question :
The actuarial gains or losses that result from changes in the projected benefit obligation are called
                 Asset                       Liability
        Gains & Losses       Gains & Losses

Question 1.
Question :
In accounting for a pension plan, any difference between the pension cost charged to expense and the payments into the fund should be reported as