Question
Which best explains a curtailment'? A reduction in the number of employees or the amount of benefits they will receive in the future. The employer
Which best explains a "curtailment'?
A reduction in the number of employees or the amount of benefits they will receive in the future. | ||
The employer puts an end to the plan using company lawyers. | ||
The employer stops contributing to the plan. | ||
The employees stop contributing to the plan. |
In Canada, employer-sponsored pension plans are
increasingly defined contribution. | ||
increasingly defined benefit. | ||
decreasingly defined contribution. | ||
staying relatively the same. |
Current service cost for a defined benefit pension plan amounted to $1,000,000. Expected income on the pension plan's assets amounted to $7,500,000, while actual income was $7,800,000. The interest on the pension obligation was $9,000,000, which matched the actuarial estimates. No past service costs arose during the year. Given this information the pension expense for the year was:
$500,000 | ||
$2,200,000 | ||
$2,500,000 | ||
$1,000,000 |
A corporation records an unrealized loss on FV-NI investments. This would result in what type of difference and in what type of deferred tax account?
Reversible Liability | ||
Reversible Asset | ||
Permanent Liability | ||
Permanent Asset |
2. Use the following information for question. On January 1, 2020, Jeckyll Ltd. signs a 8-year non-cancellable lease agreement to lease a storage building from Hyde Inc. Hyde is in the business of leasing/selling property. Collectibility of the lease payments is reasonably assured and no additional costs are to be incurred by the lessor (other than executory costs). Both the lessor and the lessee are private corporations adhering to ASPE. The following information is available regarding this lease agreement: 1. The agreement requires cqual payments at the end of each year. At January 1, 2020, the fair value of the building is $ 1,350,000 and Hyde's book value is S 1,125,000 3. The building has an estimated economic life of 8 years, with no residual value. Jeckyll uses straight- line depreciation for all its depreciable assets. 4. At the termination of the lease, title to the building will transfer to the lessee. 5. Jeckyll's incremental borrowing rate is 10%. Hyde Inc. set the annual rental to ensure a 9% rate of return. The lessor's implicit rate is known to Jeckyll. 6. The yearly lease payment includes $ 4,500 executory costs related to taxes on the property. Rounded to the nearest dollar, the amount of the minimum annual lease payment is O $ 203,252 O $ 239,402 O $ 243,902 O $ 248,402
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