as below

Question 16

Given the following items and amounts, compute the actual return on plan assets: fair value of plan assets at the beginning of the period $9,450,000; benefits paid during the period $1,430,000; contributions made during the period $1,040,000; and fair value of the plan assets at the end of the period $10,090,000.

Actual return on plan assets

$

Brief Exercise 20-1

AMR Corporation (parent company of American Airlines) reported the following (in millions).

Service cost		$366
Interest on P.B.O.		737
Return on plan assets		593
Amortization of prior service cost		13
Amortization of net loss		154

Compute AMR Corporation’s pension expense. (Enter answer in millions.)

Pension expense

$ millions

Brief Exercise 20-5

Sarasota Corporation amended its pension plan on January 1, 2017, and granted $151,240 of prior service costs to its employees. The employees are expected to provide 1,990 service years in the future, with 340 service years in 2017. Compute prior service cost amortization for 2017.

Prior service cost amortization for 2017

$

Brief Exercise 20-6

At December 31, 2017, Ivanhoe Corporation had a projected benefit obligation of $567,100, plan assets of $344,400, and prior service cost of $120,900 in accumulated other comprehensive income. Determine the pension asset/liability at December 31, 2017. (Enter liability using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Pension asset/liability at December 31, 2017

$

Brief Exercise 20-8

Indigo Corporation has the following balances at December 31, 2017.

Projected benefit obligation		$2,474,000
Plan assets at fair value		1,851,000
Accumulated OCI (PSC)		1,126,000

What is the amount for pension liability that should be reported on Indigo's balance sheet at December 31, 2017?

Pension liability balance at December 31, 2017

$

Brief Exercise 20-10

Stellar Corp. has three defined benefit pension plans as follows.

		Pension Assets (at Fair Value)		Projected Benefit Obligation
Plan X		$638,000		$491,000
Plan Y		980,000		751,000
Plan Z		588,000		640,000

How will Stellar report these multiple plans in its financial statements?

Pension Asset		$
Pension Liability		$

Brief Exercise 20-11

Windsor Corporation has the following information available concerning its postretirement benefit plan for 2017.

Service cost		$41,500
Interest cost		49,600
Actual and expected return on plan assets		27,900

Compute Windsor’s 2017 postretirement expense.

Postretirement expense 2017

$

Exercise 20-19

Skysong Co. provides the following information about its postretirement benefit plan for the year 2017.

Service cost		$ 42,100
Contribution to the plan		9,700
Actual and expected return on plan assets		10,500
Benefits paid		21,400
Plan assets at January 1, 2017		102,100
Accumulated postretirement benefit obligation at January 1, 2017		330,200
Discount rate		10	%

Compute the postretirement benefit expense for 2017.

Postretirement benefit expense

$

Exercise 20-21

Culver Inc. provides the following information related to its postretirement benefits for the year 2017.

Accumulated postretirement benefit obligation at January 1, 2017		$729,100
Actual and expected return on plan assets		36,400
Prior service cost amortization		22,700
Discount rate		11	%
Service cost		80,100

Compute postretirement benefit expense for 2017.

Postretirement benefit expense

$

Exercise 20-23

Ayayai Co. provides the following information about its postretirement benefit plan for the year 2017.

Service cost		$86,000
Prior service cost amortization		3,100
Contribution to the plan		54,200
Actual and expected return on plan assets		58,700
Benefits paid		41,900
Plan assets at January 1, 2017		702,500
Accumulated postretirement benefit obligation at January 1, 2017		758,600
Accumulated OCI (PSC) at January 1, 2017		96,700	Dr.
Discount rate		9	%

Prepare a worksheet inserting January 1, 2017, balances, showing December 31, 2017, balances, and the journal entry recording postretirement benefit expense. (Enter all amounts as positive.)

AYAYAI CO. Postretirement Benefit Worksheet—2017

General Journal Entries

Memo Record

Items

Annual Postretirement Expense

Cash

OCI—Prior Service Cost

Postretirement Asset/ Liability

APBO

Plan Assets

Balance, Jan. 1, 2017

$

$

$

$

$

$

Service cost

Interest cost

Actual return

Contributions

Benefits

Amortization of PSC

Journal entry for 2017

$

$

Accumulated OCI, Dec. 31, 2016

Balance, Dec. 31, 2017

$

$

$

$

Exercise 20-3 (Part Level Submission) Marigold Company provides the following information about its defined benefit pension plan for the year 2017. Service cost $91,300 Contribution to the plan 102,900 Prior service cost amortization 9,500 Actual and expected return on plan assets 64,800 Benefits paid 39,400 Plan assets at January 1, 2017 648,700 Projected benefit obligation at January 1, 2017 694,400 Accumulated OCI (PSC) at January 1, 2017 150,900 Interest/discount (settlement) rate 9 % Warning Ok   Cancel

(a) Prepare a pension worksheet inserting January 1, 2017, balances, showing December 31, 2017. (Enter all amounts as positive.) MARIGOLD COMPANY Pension Worksheet—2017. General Journal Entries   Memo Record Items   Annual Pension Expense Cash OCI Prior Service Cost Pension Asset/ Liability Projected Benefit Obligation Plan Assets Balance, January 1, 2017 $ $ $ $ $ $ Service cost Interest cost Actual return Amortization of PSC Contributions Benefits Journal entry for 2017 $ $ Accumulated OCI, Dec. 31, 2016 Balance, Dec. 31, 2017 $ $ $ $ Warning

(b) The parts of this question must be completed in order. This part will be available when you complete the part above.

Exercise 20-11 (Part Level Submission) Whispering Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2017 in which no benefits were paid. 1. The actuarial present value of future benefits earned by employees for services rendered in 2017 amounted to $56,100. 2. The company’s funding policy requires a contribution to the pension trustee amounting to $144,590 for 2017. 3. As of January 1, 2017, the company had a projected benefit obligation of $901,000, an accumulated benefit obligation of $807,400, and a debit balance of $397,700 in accumulated OCI (PSC). The fair value of pension plan assets amounted to $605,700 at the beginning of the year. The actual and expected return on plan assets was $53,900. The settlement rate was 9%. No gains or losses occurred in 2017 and no benefits were paid. 4. Amortization of prior service cost was $50,500 in 2017. Amortization of net gain or loss was not required in 2017. Warning Ok   Cancel

(a) Determine the amounts of the components of pension expense that should be recognized by the company in 2017. (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45).) Components of Pension Expense $ $ Warning

(b) The parts of this question must be completed in order. This part will be available when you complete the part above.

(c) The parts of this question must be completed in order. This part will be available when you complete the part above.