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this is why the pbo for y 1 not 280 rather than 300 , because the funding start at the beginning of the year so the plan asset return assume to decrease year on pension expense and journal entry to record this return assume to be : 20000 pension assets ( increase in plan assets ) 20000 pension exp ( decrease in pension exp ).
tax payable 154, but 2 of them (10*20%) are due to warranty expense cannot be deducted. this should be defer asset, not part of income expense-current?
If 300,000 service cost is a included in the PBO, why is it not added in year two as well. Year 1: 300,000, no interest, no payments out. Year 2: 300,000 beginning OPB + 12% interest + Service cost for year 2 = 660,000, not $336,000. Expense: Year 2 SC: 300,000 I: 66,000 R: (20,000) Total = 346,000 Can you please explain? I am finding conflicting information online over Pension Benefit Accounting. I just want to be completely up to date on this stuff.
IRS Code Section 2032 allows for estates to elect an alternate valuation date if the value of the assets held by the estate decrease in value after the date of death. Here, the asset has increased from $50,000 to $54,000. The proper gain to be recognized should be $9,000.