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PENCOMP s balance sheet at December 31, 2020, Is as follows. Assets Cash $1,000 344 1.344 Inventory Total current assets Plant and equipment Accumulated depreciation

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PENCOMP s balance sheet at December 31, 2020, Is as follows. Assets Cash $1,000 344 1.344 Inventory Total current assets Plant and equipment Accumulated depreciation PENCOMP, INC. BALANCE SHEET AS OF DECEMBER 31, 2020 Liabilities 5438 Notes payable 1,800 Pension liability 2.238 Total liabilities 2,000 Stockholders'equity (240) Common stock 1.760 Retained earnings $3.998 Accumulated other comprehensive income Total stockholders' equity Total liabilities and stockholders' equity Total assets 2,000 896 1242 ) 2,654 $3,998 476.5 15.0 Additional Information concerning PENCOMP's defined benefit pension plan is as follows. Projected benefit obligation at 12/31/20 $820.5 Plan assets (fair value) at 12/31/20 Unamortized past service cost at 12/31/20 1500 Amortization of past service cost during 2021 Service cost for 2021 420 Discount rate 10% Expected rate of return on plan assets in 2021 12 % Actual return on plan assets in 2021 104 Contributions to pension fund in 2021 70,0 Benefits paid during 2021 40.0 Expected remaining service life of employees 15.0 Average period to vesting of prior service costs Unamortized net loss due to changes in actuarial assumptions 920 and deferred net losses on plan assets at 12/31/20 100 Other information about PENCOMP is as follows. Salary expense, all paid with cash during 2021 $700,0 Sales, all for cash 3,000,0 Purchases, all for cash 2.000.0 Inventory at 12/31/21 1.800.0 Property originally cost $2,000 and is depreciated on a straight-line basis over 25 years with no residual value Interest on the note payable is 10% annually and is paid in cash on 12/31 of each year. Dividends declared and paid are $200 in 2021. Compute return on equity for PENCOMP for 2021 (assume stockholders' equity is equal to year-end average stockholders equity). Do you think an argument can be made for including some or even all of the change in accumulated other comprehensive income (due to pensions) in the numerator of return on equity? Illustrate that calculation, . . I. | = =|| 99 a O Words e Textbook and Media Explain a rationale for why the FASB has (so far) decided to exclude from the current period income statement the effects of pension plan amendments and gains and losses due to changes in actuarial assumptions. BIT. TIE E FR O Words) PENCOMP's balance sheet at December 31, 2020, is as follows Assets Cash Inventory Total current assets Plant and equipment Accumulated depreciation $1.000 344 1344 PENCOMP, INC. BALANCE SHEET AS OF DECEMBER 31, 2020 Liabilities $438 Notes payable 1,800 Pension ability 2238 Total abilities 2.000 Stockholders' equity (240 Common stock 1,760 Retained earning $3.998 Accumulated other comprehensive Income Total stockholders' equity Total liabilities and stockholders' equity Total assets 2000 896 1242 2,654 $3,998 Additional Information concerning PENCOMP's defined benefit pension plan is as follows. Projected benefit obligation at 12/31/20 $8205 Pian assets itair value) at 12/31/20 4765 Unamortized past service cost at 12/31/20 1500 Amortization of past service cost during 2021 15.0 Service cost for 2021 Discount rate Expected rate of return on plan assets in 2021 Actual return on plan assets in 2021 Contributions to pension fund in 2021 Benefits paid during 2021 40.0 Expected remaining service life of employees Average period to vesting of prior service costs 100 Uramortized net loss due to changes in actuarial assumptions 92.0 and deferred net losses on plan assets at 12/31/20 420 10 12 10.4 70.0 150 Other information about PENCOMP is as follows. Salary expense, all paid with cash during 2021 57000 Sales, all for cash 310000 Purchases, all for cash 2.000.0 Inventory at 12/3121 1.800.0 Property originally cost $2.000 and is deprecated on a straight-toe baies over 25 years with no residual value. Interest on the note payable is 10% annually and is paid in cahon 12/31 of each year. Dividends declared and paid are $200 in 2021 Compute return on equity for PENCOMP for 2021 (assume stockholders' equity is equal to year-end average stockholders equity). Do you think an argument can be made for including some or even all of the change in accumulated other comprehensive income (due to pensions) in the numerator of return on equity? Illustrate that calculation , + ATTI + O Word) e Textbook and Media Explain a rationale for why the FASB has (so far) decided to exclude from the current period income statement the effects of pension plan amendments and gains and losses due to changes in actuarial assumptions. . T I E Ea 99 + O Words) PENCOMP s balance sheet at December 31, 2020, Is as follows. Assets Cash $1,000 344 1.344 Inventory Total current assets Plant and equipment Accumulated depreciation PENCOMP, INC. BALANCE SHEET AS OF DECEMBER 31, 2020 Liabilities 5438 Notes payable 1,800 Pension liability 2.238 Total liabilities 2,000 Stockholders'equity (240) Common stock 1.760 Retained earnings $3.998 Accumulated other comprehensive income Total stockholders' equity Total liabilities and stockholders' equity Total assets 2,000 896 1242 ) 2,654 $3,998 476.5 15.0 Additional Information concerning PENCOMP's defined benefit pension plan is as follows. Projected benefit obligation at 12/31/20 $820.5 Plan assets (fair value) at 12/31/20 Unamortized past service cost at 12/31/20 1500 Amortization of past service cost during 2021 Service cost for 2021 420 Discount rate 10% Expected rate of return on plan assets in 2021 12 % Actual return on plan assets in 2021 104 Contributions to pension fund in 2021 70,0 Benefits paid during 2021 40.0 Expected remaining service life of employees 15.0 Average period to vesting of prior service costs Unamortized net loss due to changes in actuarial assumptions 920 and deferred net losses on plan assets at 12/31/20 100 Other information about PENCOMP is as follows. Salary expense, all paid with cash during 2021 $700,0 Sales, all for cash 3,000,0 Purchases, all for cash 2.000.0 Inventory at 12/31/21 1.800.0 Property originally cost $2,000 and is depreciated on a straight-line basis over 25 years with no residual value Interest on the note payable is 10% annually and is paid in cash on 12/31 of each year. Dividends declared and paid are $200 in 2021. Compute return on equity for PENCOMP for 2021 (assume stockholders' equity is equal to year-end average stockholders equity). Do you think an argument can be made for including some or even all of the change in accumulated other comprehensive income (due to pensions) in the numerator of return on equity? Illustrate that calculation, . . I. | = =|| 99 a O Words e Textbook and Media Explain a rationale for why the FASB has (so far) decided to exclude from the current period income statement the effects of pension plan amendments and gains and losses due to changes in actuarial assumptions. BIT. TIE E FR O Words) PENCOMP's balance sheet at December 31, 2020, is as follows Assets Cash Inventory Total current assets Plant and equipment Accumulated depreciation $1.000 344 1344 PENCOMP, INC. BALANCE SHEET AS OF DECEMBER 31, 2020 Liabilities $438 Notes payable 1,800 Pension ability 2238 Total abilities 2.000 Stockholders' equity (240 Common stock 1,760 Retained earning $3.998 Accumulated other comprehensive Income Total stockholders' equity Total liabilities and stockholders' equity Total assets 2000 896 1242 2,654 $3,998 Additional Information concerning PENCOMP's defined benefit pension plan is as follows. Projected benefit obligation at 12/31/20 $8205 Pian assets itair value) at 12/31/20 4765 Unamortized past service cost at 12/31/20 1500 Amortization of past service cost during 2021 15.0 Service cost for 2021 Discount rate Expected rate of return on plan assets in 2021 Actual return on plan assets in 2021 Contributions to pension fund in 2021 Benefits paid during 2021 40.0 Expected remaining service life of employees Average period to vesting of prior service costs 100 Uramortized net loss due to changes in actuarial assumptions 92.0 and deferred net losses on plan assets at 12/31/20 420 10 12 10.4 70.0 150 Other information about PENCOMP is as follows. Salary expense, all paid with cash during 2021 57000 Sales, all for cash 310000 Purchases, all for cash 2.000.0 Inventory at 12/3121 1.800.0 Property originally cost $2.000 and is deprecated on a straight-toe baies over 25 years with no residual value. Interest on the note payable is 10% annually and is paid in cahon 12/31 of each year. Dividends declared and paid are $200 in 2021 Compute return on equity for PENCOMP for 2021 (assume stockholders' equity is equal to year-end average stockholders equity). Do you think an argument can be made for including some or even all of the change in accumulated other comprehensive income (due to pensions) in the numerator of return on equity? Illustrate that calculation , + ATTI + O Word) e Textbook and Media Explain a rationale for why the FASB has (so far) decided to exclude from the current period income statement the effects of pension plan amendments and gains and losses due to changes in actuarial assumptions. . T I E Ea 99 + O Words)

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