ACCT 3100 Fin Acc - Baruch College, CUNY. MT2 Practice from Test Bank

ACCT 3100 Fin Acc - Baruch College, CUNY. MT2 Practice from Test Bank MT2 practice from test bank  32.The following information pertains to Havana Corporation's defined benefit pension plan: At the end of 2013, Havana contributed $696 thousand to the pension fund and made benefit payments of $624 thousand to retirees. The expected rate of return on plan assets was 10%, and the actuary's discount rate (settlement rate) is 8%. There were no changes in actuarial estimates and assumptions regarding the PBO. What is the 2013 service cost for Havana's plan?  A.$276 thousand.  B.$648 thousand.  C. $528 thousand  D.Cannot be determined from the given information.  E. None of the above are correct32. Answer B PBO1= PBO0+IC+SC-Ben $6,504= $6,000 + .08x$6000 + SC -$624 SC= $6,504-$6,000 - .08x$6,000 + $624 SC=$648 Ans= B.33.  Consider the following information:  PPA begin…………………… $800  PPA end……………………… 900  Funding during year……….. 30  Benefits paid during year……… 5  Expected return on PPA……. 10% The actual return on PPA is: A. $60 B. $70 C. $75 D. $85 E. none of the above33. Answer PPA1=PPA0 +Funding + Actual(ROA) -Ben $900 = $800 + $30 + Actual(ROA)- $5 Actual(ROA) = $900-$800 -$30+ 5 = $75 (C.)Q 34  Given following info for current year: Given the above amounts, after recording pension expense for the current year, the balance sheet will show:  A. increased pension net liability(PBO-PPA) of $3,000  B. increased pension net liability(PBO-PPA) of $112,000  C. increased pension asset(PPA) of $115,000  D.increase in the debit balance of AOCI of $7,800  E. None of the above