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leoisawesome18
25.01.2021 •
Business
postretirement health care benefit plan. On January 1 of the current calendar year, the following plan-related data were available. Net loss-postretirement benefit plan $ 222,000 Accumulated postretirement benefit obligation $ 2,100,000 Fair value of plan assets $ 440,000 Average remaining service period to retirement 12 years Average remaining service period to full eligibility 10 years The rate of return on plan assets during the year was 12%. The expected return was 10%. The actuary revised assumptions regarding the APBO at the end of the year, resulting in a $32,000 increase in the estimate of the obligation. Required: 1. Calculate any amortization of net loss that should be included as a component of postretirement benefit expense for the current year. 2. Determine the net loss or gain as of December 31 of the current year.
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Ответ:
1. Amortization of net loss = $1000
2. Ending Net Loss: $244,200
Explanation:
Data Given:
Net Loss Post Retirement Benefit Plan = $222,000
Accumulated Port Retirement Benefit Obligation = $2,100,000
Fair value of Plan Assets = $440,000
Average Remaining Service period to Retirement = 12 years
Average Remaining Service period to full eligibility = 10 years
Rate of Return on Plan Assets during the year = 12%
Expected Return = 10%
Estimate in the obligation = $32,000
Required:
1. Amortization of net loss
Solution:
For Amortization of net loss, we need to have the value of excess at the beginning of the year and average remaining service years.
So,
Net loss = $222,000
And
Accumulated Port Retirement Benefit Obligation = $2,100,000
Expected Return = 10%
So,
Find 10% of the Accumulated Port Retirement Benefit Obligation
$2,100,000 x 10% = $210,000
Now, for excess at the beginning of the year:
$222,000 - $210,000
excess at the beginning of the year = $12,000
And we know that,
Average Remaining Service period to Retirement = 12 years
Amortization of net loss = $12,000/12 years
Amortization of net loss = $1000
2. Net loss or gain at the end of the year.
Solution:
We know the beginning net loss = $222,000
Estimate in the obligation = $32,000
Now, we need to find the excess actual return over expected return:
Amortization of net loss = $1000
Fair value of Plan Assets = $440,000
Rate of Return on Plan Assets during the year = 12%
Expected Return = 10%
excess actual return over expected return: $440,000 x (12% - 10%)
excess actual return over expected return: $440,000 x (2%)
excess actual return over expected return: $8,800
Now,
For the Ending Net Loss:
(beginning net loss + Estimate in the obligation - excess actual return over expected return - Amortization of net loss)
$222,000 + $32,000 -$8,800 - $1000 = $244,200
Ending Net Loss: $244,200
Ответ:
Preparation of selling expenses is below
Explanation:
The preparation of selling expense budget for the month of June is shown below:-
Zilly Co.
June
Sales budgeted $176,000
Commission of sales in percentage 7%
Sales Commission $12,320
Add: Monthly salary of sales manager $6,900
June Selling expenses $19,220
Note :- For computing the Monthly salary of sales manager we multiply Sales budgeted with commission of sales in percentage.