Accounting Assignment | Buy Homework Help
1. The following information pertains to Kane Co.’s defined benefit pension plan:Prepaid pension cost (net asset), January 1, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,000Service cost. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,000Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,000Expected return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,000Amortization of unrecognized prior service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52,000Employer contributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000In its December 31, 2009, balance sheet, what amount should Kane report as accrued pension cost (net liability)?
(a) $45,000
(b) $49,000
(c) $67,000
(d) $87,000
2. An employer’s obligation for postretirement health benefits that are expected to be provided to or for an employee must be fully accrued by the date the:
(a) Employee is fully eligible for benefits.
(b) Employee retires.
(c) Benefits are utilized.
(d) Benefits are paid.
3. The following data relate to Nola Co.’s defined benefit pension plan as of December 31,2009:Unfunded accumulated benefit obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $140,000Unrecognized prior service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,000Accrued pension cost. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000What amount should Nola report as excess of additional pension liability over unrecognized prior service cost in its statement of stockholders’ equity?
(a) $15,000
(b) $35,000
(c) $95,000
(d) $175,000. Get Accounting Help Today
