The following information relates to the pension plan for the employees of Turner Co.:

1/1/20 12/31/20 12/31/21

Projected benefit obligation 9,765,000 10,458,000 14,007,000

Fair value of plan assets 8,925,000 10,920,000 12,054,000

AOCI net (gain) or loss -0- (1,512,000) (1,680,000)

Settlement rate (for year) 11% 11%

Expected rate of return (for year) 8% 7%

Turner estimates that the average remaining service life is 16 years. Turner's contribution was $1,323,000 in 2021 and benefits paid to retired employees was $987,000. The corridor for 2021 is

QUESTION 2

Equipment which cost $426,000 and had accumulated depreciation of $204,000 was sold for $198,000. This transaction should be shown on the statement of cash flows (indirect method) as a(n)

Addition to net income of $24,000 and a $198,000 cash inflow from investing activities

Additions to net income of $24,000 and a $222,000 cash inflow from financing activities

Deductions from net income of $24,000 and a $222,000 cash inflow from financing activities

Deduction from net income of $24,000 and a $198,000 cash inflow from investing activities

QUESTION 3

On January 1, 2016, Lake Co. purchased a machine for $3,250,000 and depreciated it by the straight-line method using an estimated useful life of eight years with no salvage value. On January 1, 2019, Lake determined that the machine had a useful life of six years from the date of acquisition and will have a salvage value of $250,000. An accounting change was made in 2019 to reflect these additional data. The accumulated depreciation for this machine should have a balance at December 31, 2019 of

1,095,000

$593,750

$1,218,750

$1,812,500

QUESTION 4

On December 31, 2021, Grantham, Inc. appropriately changed its inventory valuation method to FIFO cost from weighted-average cost for financial statement and income tax purposes. The change will result in a $3,500,000 increase in the beginning inventory at January 1, 2021. Assume a 20% income tax rate. The cumulative effect of this accounting change on beginning retained earnings is

$700,000

$2,800,000

$0

$3,500,000

QUESTION 5

In preparing Titan Inc.s statement of cash flows for the year ended December 31, 2018,

the following amounts were available:

Collection on a non-trade note receivable $615,000

Purchase of Land for cash 115,000

Issued bonds payable for cash 639,000

Purchase treasury stock 300,000

Of the above items, what amount should be reported on Titan, Inc.s statement of cash flows for investing activities?

$730,000

$1,069,000

$500,000

$615,000