Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Johnson Corp. sponsors a defined benefit plan for its employee group. At the end of December 2014, (the year end of Johnson Corp), the pension

image text in transcribed
image text in transcribed
Johnson Corp. sponsors a defined benefit plan for its employee group. At the end of December 2014, (the year end of Johnson Corp), the pension plan had a defined benefit obligation of $45,000. The fair value of the assets administered by the pension plan trustee was $30,000. The following information is provided related to the plan for 2015 and 2016.There was no accumulated OCI at the end of 2014. 2015 Plan amendment during the year resulting in additional benefits $15,000 payable to employee group $4,500 Actuarial revaluation- DBO increased Past service cost amendment effective in 2015- liability is reduced $5,000 Funding of Plan assets during the year $6,750 $5,250 Current service cost $1,800 Benefits paid to retirees $37,200 Fair value of Plan Assets December 31, 2015 $2,250 Actual return on Plan Assets 2016 Actuarial revaluation-DBO increased $900 Funding of Plan assets during the year $4,500 $6,000 Current service cost $6,000 Benefits paid to retirees $35,925 Fair value of Plan Assets December 31, 2016 Actual return on Plan Assets $225 Additional information: The company has a December 31st, year-end. The plan is non-contributory. The company's long-term debt is subject to a 6% discount rate. Required Prepare the attached pension worksheet showing all relevant amounts for 2015 and 2016 with respect to Johnson's defined benefit pension plan

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

CIA Part 3 Business Knowledge For Internal Auditing 2021

Authors: MUHAMMAD ZAIN

1st Edition

B09B23JKZ8, 979-8739475527

More Books

Students also viewed these Accounting questions

Question

Why is a bank loan a financial asset?

Answered: 1 week ago

Question

Guidelines for Informative Speeches?

Answered: 1 week ago