Fin48

Posted on February 20, 2017

Finance Assignment Help 48

 
Pension Plan Problem
 
Fred began work on 1/1/2002. On 1/1/2010 the company introduced a pension plan that would pay him an annual retirement benefit equal to:​​​​
1.5% x years of employment x highest salary earned Fred must work for at least 10 years (until 12/31/2011) before being eligible to receive his pension. He is expected to retire on 12/31/2019 (after 18 years with the company). Company will make his first retirement benefit payment on 12/31/2020. Fred will receive his 10th and final payment on 12/31/2029 and will promptly croak on that date (in actuality it’s a mortality estimate).
 
Fred receives full credit for the 8 years of prior service. His salary ($61,400 at 1/1/2010) will increase 5% each year. A 10% discount rate is used for calculating pension obligations.
On 1/1/2010 the company pays $5,000 into a pension fund (a 6% return is expected and actually received in 2010).
 
 

How it Works

How It works ?

Step 1:- Click on Submit your Assignment here or shown in left side corner of every page and fill the quotation form with all the details. In the comment section, please mention product code mentioned in end of every Q&A Page. You can also send us your details through our email id support@assignmentconsultancy.com with product code in the email body. Product code is essential to locate your questions so please mentioned that in your email or submit your quotes form comment section.
 
Step 2:- While filling submit your quotes form please fill all details like deadline date, expected budget, topic , your comments in addition to product code . The date is asked to provide deadline.
 
Step 3:- Once we received your assignments through submit your quotes form or email, we will review the Questions and notify our price through our email id. Kindly ensure that our email id assignmentconsultancy.help@gmail.com and support@assignmentconcultancy.com must not go into your spam folders. We request you to provide your expected budget as it will help us in negotiating with our experts.
 
Step 4:- Once you agreed with our price, kindly pay by clicking on Pay Now and please ensure that while entering your credit card details for making payment, it must be done correctly and address should be your credit card billing address. You can also request for invoice to our live chat representatives.
 
Step 5:- Once we received the payment we will notify through our email and will deliver the Q&A solution through mail as per agreed upon deadline.
 
Step 6:-You can also call us in our phone no. as given in the top of the home page or chat with our customer service representatives by clicking on chat now given in the bottom right corner.
 

Features

Features for Assignment Help

Zero Plagiarism
We believe in providing no plagiarism work to the students. All are our works are unique and we provide Free Plagiarism report too on requests.

 

Relevancy
We believe in providing perfect, relevant and 100% accurate solutions to the student as per questions asked. All our experts are perfect in providing that so as to give unique experience to the students.

 

Three Stage Quality Check
We are the only service providers boasting of providing original, relevant and accurate solutions. Our three stage quality process help students to get perfect solutions.

 

 

100% Confidential
All our works are kept as confidential as we respect the integrity and privacy of our clients.

Related Services


 

 
Required:
 
a. Calculate the vested benefit obligation (VBO), the accumulated benefit obligation (ABO) and the PBO (projected benefit obligation) on 1/1/2010. Write the relevant journal entry(ies) on 1/1/2010.

 
b. Calculate the Pension Expense for the year ended 12/31/2010 using the Pension Worksheet. Write the journal entry to record the Pension Expense. What are the balances in the Pension Asset/Liability accounts and the OCI-Prior Service Accounts on 12/31/2010? (indicate debit or credit balances)
 
c. Assume on 1/1/2011, the company contributes $30,000 cash into plan. A 6% return on plan assets is expected but the actual return in 2011 is a loss of $3,000. Calculate the Pension Expense for the year ended 12/31/2011 using the Pension Worksheet. Write the journal entry to record the Pension Expense and any unexpected gains/losses on plan assets on 12/31/2011. What are the balances in the Pension Asset/Liability accounts, the OCI-Prior Service and the OCI-Gains and Losses Accounts on 12/31/2011? (Indicate debit or credit balances).
 
d. Assume all the facts in c. are true except that assume PBO on 12/31/2011 = $35,000. Expected return in 2012 is $2,000. Actual Return in 2012 is $2100. Calculate the Pension Expense for the year ended 12/31/2012 using the Pension Worksheet. Write the journal entry (ies) to record the Pension Expense, any unexpected gains/losses on plan assets, and amortization of any accumulated gains/losses for the year ended 12/31/2012.

 

Product Code :Fin48

To get answer for this question, kindly click here (Note: Don’t forget to write the product code in comment section)

You can also email us at assignmentconsultancy.help@gmail.com but please mentioned product code in the mail body while sending emails.You can browse more questions to get answer in our Q&A sections here.

Summary
User Rating
5 based on 1 votes
URL