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# Question: 1. (TCO C) Presented below is pension information related to Woods, Inc. for the year 2013.

Service cost \$76,000 Interest on projected benefit obligation \$47,000 Interest on vested benefits \$24,000 Amortization of prior service cost due to increase in benefits \$12,000 Expected return on plan assets \$18,000 The amount of pension expense to be reported for 2013 is (Points : 5) \$159,000. \$117,000. \$105,000. \$141,000.

Solution: Pension expense to be re Service cost Interest on projected benef Amortization of PSC Expected return on plan as

## The amount of pension e

Question: Solution: 2. (TCO C) Kasper, Inc. sponsors a defined-benefit pension plan. The following data relates to the operation Pensionof expense the planreporte for the Service cost \$260,000 Service Cost Contributions to the plan \$250,000 Interest on projected benef Actual return on plan assets \$240,000 Expected return on plan as Projected benefit obligation (beginning of year) \$2,700,000 Fair value of plan assets (beginning of year) \$2,900,000 The amount of pension e

The expected return on plan assets and the settlement rate were both 9%. The amount of pension expense reported for 2013 i \$503,000.00. \$260,000.00. \$242,000.00. \$263,000.00.

Question: 3. (TCO C) A pension asset is reported when (Points : 5) the fair value of the pension plan assets is less than the accumulated benefit obligation. the fair value of the pension plan assets is less than the accumulated benefit obligation and a prior service cost exists. the accumulated benefit obligation is less than the fair value of the pension plan assets. the projected benefit obligation is less than the fair value of the pension plan assets.

A pension asset is reported when the projected benefit obligation is less than the fair value of the pension plan assets

Question: Solution: 4. (TCO C) Kathy's Kittens, Inc. has provided the following information for their post-retirement benefits Post-retirement plan for 2013. expense Service cost Service cost \$860,000 Interest on projected benef Discount rate 10% APBO, January 1, 2013 \$5,200,000 EPBO, January 1, 2013 \$5,600,000 The amount of post-retire Average remaining service to full eligibility 20 years Average remaining service to expected retirement 25 years The amount of post-retirement expense for 2013 is (Points : 5)

## \$1,380,000. \$1,588,000. \$1,640,000. \$1,420,000.

Pension expense to be reported for 2013: Service cost Interest on projected benefit obligation Amortization of PSC Expected return on plan assets

## The amount of pension expense to be reported for 2013 is \$117,000

Pension expense reported in 2013 Service Cost Interest on projected benefit obligation Expected return on plan assets

240,000 184,000 152,000 272,000 The amount of pension expense to be reported for 2013 is \$242,000 expense reported for 2013 is (Points : 5)

## of the pension plan assets.

Post-retirement expense for 2013 Service cost Interest on projected benefit obligation

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420000