Reference no: EM131054635
The actuary for the pension plan of Gustafson Inc. calculated the following net gains and losses. Incurred during the Year (Gain) or Loss
2014 $300,000
2015 480,000
2016 (210,000)
2017 (290,000)
Other information about the company’s pension obligation and plan assets is as follows. As of January 1, Projected Benefit Obligation Plan Assets (market-related asset value)
2014 $4,000,000 $2,400,000
2015 4,520,000 2,200,000
2016 5,000,000 2,600,000
2017 4,240,000 3,040,000
Gustafson Inc. has a stable labor force of 400 employees who are expected to receive benefits under the plan. The total service-years for all participating employees is 5,600. The beginning balance of accumulated OCI (G/L) is zero on January 1, 2014. The market-related value and the fair value of plan assets are the same for the 4-year period. Use the average remaining service life per employee as the basis for amortization.
Compute the minimum amount of accumulated OCI (G/L) amortized as a component of net periodic pension expense for each of the years 2014, 2015, 2016, and 2017. Apply the “corridor” approach in determining the amount to be amortized each year. (Round answers to 0 decimal places, e.g. 2,500.)
|
What is the drg operating payment
: A medical college of Virginia located in the urban city of Richmond, Virginia has a wage of 1.8579. a student from nearby Virginia Commonwealth university has just been treated for viral meningitis during a 5 day length of stay (LOS) DRG weight: 1.53..
|
|
Since limiting tax liability is goal of estate planning
: Since limiting tax liability is a major goal of estate planning, there are various strategies that an estate planner can employ. In this discussion you explore these strategies and their impact on estate plans. Choose one strategy to limit estate tax..
|
|
Gifting can be an effective way to reduce estate taxes
: Gifting can be an effective way to reduce estate taxes but not all gifts are tax free. Successful estate planning depends on a thorough understanding of the gift transfers, both direct and indirect, and their tax implications. Choose a type of indire..
|
|
What is npv for each project if appropriate discount rate
: Fuji Software, Inc., has the following mutually exclusive projects. Year Project A Project B 0 –$ 29,000 –$ 32,000 1 16,500 17,500 2 13,000 11,500 3 3,800 13,000 a-1. Calculate the payback period for each project. What is the NPV for each project if ..
|
|
Amortized as component of net periodic pension expense
: The actuary for the pension plan of Gustafson Inc. calculated the following net gains and losses. Incurred during the Year (Gain) or Loss. Compute the minimum amount of accumulated OCI (G/L) amortized as a component of net periodic pension expense fo..
|
|
According to the efficient market hypothesis
: According to the efficient market hypothesis, prices of actively traded stocks ________. A) can be under- or over-valued in an efficient market B) can only be under-valued in an efficient market C) do not differ from their true values in an efficient..
|
|
Savings to cover the cost of the adventure
: You are about to set sail on your long-term goal of sailing the seven seas over a five-year period. You anticipate expenses to run $490,000 per year and that you will be earning 5% interest on your savings. Calculate how much you will need in savings..
|
|
Consider levered firm projects
: Consider a levered firm’s projects that have similar risks to the firm as a whole. Is the discount rate for the projects higher or lower than the rate computed using the security market line? Why?
|
|
Transactions and financial statements
: Transactions and financial statements (accrual basis) for the month of December 2014 Using only five accounts – Expense, Liabilities, Revenue, Net assets and Assets – record the following transactions and prepare a balance sheet and statement of oper..
|