wolz company a small business has had a defined benefit 250778

Wolz Company, a small business, has had a defined benefit pension plan for its employees for several years. At the beginning of 2007 the company amended the pension plan; this amendment provides for increased benefits based on services rendered by certain employees in prior periods. The company’s actuary has determined that the related unrecognized prior service cost amounts to $140,000. The company has four participating employees who are expected to receive the increased benefits. The following is a schedule identifying the employees and their expected years of future service:

Employee Expected Years of

Numbers Future Service

1 …………………..2

2 …………………..3

3 …………………..4

4 …………………..5

Required

1. Using the straight-line method, (a) compute the average remaining service life, and (b) prepare a schedule to amortize the unrecognized prior service cost.

2. Using the years-of-future-service method instead, prepare a set of schedules to determine (a) the amortization fraction for each year, and (b) the amortization of the unrecognized prior service cost.

Related Articles

armstrong helmet company 239138

Armstrong Helmet Company manufactures a unique model of bicycle helmet Question Case project Learning Objectives: Prepare practical applications of course concepts Develop analytical and critical thinking Develop decision-making capabilities Enhance professional...

read more
GET A FREE QUOTE





  
Open chat
Need help? We are Online 24/7
Hello 👋
Can we help you?