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Subject Topic: Pensions (Topic Closed Topic Closed) Post ReplyPost New Topic
  
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Lorenita1206
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Posted: 01 Jul 2010 at 12:22 | IP Logged  

Need help!!!

Becker  cpa-05400

this question is driving me crazy, please help, I just need to know why the Gain is zero...

Thank youuuuu

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KMirgAZ
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Posted: 01 Jul 2010 at 12:54 | IP Logged  

Lorenita1206 wrote:

Need help!!!

Becker  cpa-05400

this question is driving me crazy, please help, I just need to know why the Gain is zero...

Thank youuuuu

You'll get more responses if you post the actual question ;)

ETA: I tried looking up your question and Becker can't find it. I assume that you're using a different version of Becker then I am (I"m using 2009).



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Kevin
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BEC: 79
AUD: 72,84
REG: 88
FAR: 69,77
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Lorenita1206
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Posted: 01 Jul 2010 at 13:52 | IP Logged  

Hey thank you for responding, here is the exercise, gain is zero but I don't understand why....

Thank youuuu

 

12/31/1

PBO 1500,000  FV plan assets 1400,000 unrecognized prior service 200k net transition asset 60k

12/31/2

pbo 1740,000  fv plan assets 1800,000 service cost 220k

discount rate 6%    expected rate 8%

make annual contribution 200k, avg life 20yrs  company expects to pay benefits totaling 170k to retired employees in yr 3

tax rate 30%

periodic penstion cost on 12/31/2  income statement?

 

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KMirgAZ
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Posted: 01 Jul 2010 at 14:08 | IP Logged  

What is the call of the question, does it just ask you to calculate the recognized gain?

 



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Kevin
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BEC: 79
AUD: 72,84
REG: 88
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Ethics: 01/2010
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Lorenita1206
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Posted: 01 Jul 2010 at 14:49 | IP Logged  

they ask me to calculate the periodic pension cost  for the year 2 and I know how to calculate everything except gain (gain is zero on the answer and I don't know why is it zero?

 

Thank you!!! :)

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