HW assignment 5
** Please show calculations for each question to get credit; failure to do so will
result in receiving a grade of 0 for the assignment.
Use the following information for questions 1 through 3.
The following information for Cooper Enterprises is given below:
December 31, 2015
Assets and obligations
Plan assets (at fair value)
Accumulated benefit obligation
Projected benefit obligation
Other Items
$400,000
640,000
700,000
Pension asset / liability, January 1, 2015
20,000
Contributions
250,000
Accumulated other comprehensive loss
335,800
There were no actuarial gains or losses at January 1, 2015. The average remaining
service life of employees is 12 years.
1.
What is the pension expense that Cooper Enterprises should report for 2015?
a. $304,200
b. $314,200
c. $250,000
d. $335,800
2.
What is the amount that Cooper Enterprises should report as its pension
liability on its balance sheet as of December 31, 2015?
a. $60,000
b. $640,000
c. $300,000
d. $700,000
3.
The amortization of Other Comprehensive Loss for 2016 is:
a. $0
b. $15,580
c. $22,150
d. $33,580
Use the following information for questions 4 through 6.
The following data are for the pension plan for the employees of Lockett Company.
Accumulated benefit obligation
Projected benefit obligation
Plan assets (at fair value)
AOCL .et loss
Settlement rate (for year)
1/1/14
12/31/15
$2,500,000
2,700,000
2,300,000
-0-
Expected rate of return (for year)
12/31/14
$2,600,000 $3,400,000
2,800,000 3,700,000
3,000,000 3,300,000
580,000 500,000
10%
9%
8%
7%
Lockettàcontribution was $420,000 in 2015 and benefits paid were $275,000. Lockett
estimates that the average remaining service life is 20 years.
4.
The actual return on plan assets in 2015 was
a. $300,000.
b. $255,000.
c. $200,000.
d. $155,000.
5.
Assume that the actual return on plan assets in 2015 was $245,000. The
unexpected gain on plan assets in 2015 was
a. $32,000.
b. $55,000.
c. $35,000.
d. $34,000.
6.
The corridor for 2015 was $300,000. The amount of AOCI-net loss amortized in
2015 was
a. $33,333.
b. $32,000.
c. $14,000.
d. $12,000.

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