Question
On January 1, 2015, Parks Co. has the following balances: Projected benefit obligation $4,200,000 Fair value of plan assets $3,750,000 The settlement rate is 10%.
On January 1, 2015, Parks Co. has the following balances:
Projected benefit obligation $4,200,000
Fair value of plan assets $3,750,000
The settlement rate is 10%. Other data related to the pension plan for 2015 are:
Service cost $240,000
Amortization of prior service costs $54,000
Contributions $270,000
Benefits paid $250,000
Actual return on plan assets $264,000
#7. The balance of the projected benefit obligation at December 31, 2015 is $
#8. The fair value of plan assets at December 31, 2015 is $
#9. The funded status of this pension as of December 31, 2015 is (Must indicate overfunded or underfunded and $$ amount)
Question #10
Logan Corp., a company whose stock is publicly traded, provides a noncontributory defined-benefit pension plan for its employees. The company's actuary has provided the following information for the year ended December 31, 2015:
Balances as of December 31, 2014
Projected benefit obligation $700,000
Fair value of plan assets $825,000
Following information for 2015
Service cost $240,000
Interest on projected benefit obligation $24,000
Amortization of prior service cost $60,000
Expected and actual return on plan assets $82,500
The market-related asset value equals the fair value of plan assets. No contributions have been made for 2015 pension cost. At December 31, 2015 The funded status of this pension is $ (Must indicate overfunded or underfunded and $$ amount)
#10.Funded Status of Pensions as of December 31, 2015 =$ (Must indicate overfunded or underfunded and $$ amount)
Question #11
Cross Company reported the following results for the year ended December 31, 2018, its first year of operations:
2018
Income (per books before income taxes) $ 2,000,000
Taxable income $ 3,200,000
The disparity between book income and taxable income is attributable to a temporary difference which will reverse in 2019.
What should Cross record as a net deferred tax asset or liability for the year ended December 31, 2018, assuming that the enacted tax rates in effect are 40% in 2018 and 35% in 2019?
#11 - Indicate whether a deferred Tax Asset or Deferred Tax Liability and $$ Amount as of December 31, 2018
Questions 12, 13 & 14
Lyons Company deducts insurance expense of $210,000 for tax purposes in 2018, but the expense is not yet recognized for accounting purposes.
In 2019, 2020, and 2021, no insurance expense will be deducted for tax purposes, but $70,000 of insurance expense will be reported for accounting purposes in each of these years.
Lyons Company has a tax rate of 40% and income taxes payable of $180,000 at the end of 2018.
There were no deferred taxes at the beginning of 2018.
#12. Amount of Deferred Tax Liability at the end of 2018 is $
#13. Amount of Income Tax Expense for 2018 is $
#14. Amount of Income Tax Expense for 2019 is $
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