PensionsPresented Below Is Information Related to Stage Department Stores, Inc

question 50

Essay

Pensions.Presented below is information related to Stage Department Stores, Inc. pension plan for 2015. $\begin{array}{lr}\text { Service cost } & \$ 550,000 \\\text { Funding contribution for } 2015 & 530,000 \\\text { Settlement rate used in actuarial computation } & 10 \% \\\text { Expected return on plan assets } & 9 \%\\\text { Amortization of PSC (due to benefit increase) } & 90,000 \\\text { Amortization of unrecognized net gains } & 48,000 \\\text { Projected benefit obligation (at beginning of period) } & 540,000 \\\text { Fair value of plan assts (at beginning of period) } & 360,000\end{array}$
Instructions
(a) Compute the amount of pension expense to be reported for 2015. (Show computations.)(b) Prepare the journal entry to record pension expense and the employer's contribution for 2015.

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Definitions:

F-Ratio

A statistical measure used in the context of ANOVA, calculated as the variance between sample means divided by the variance within the samples.

Main Effect

The direct impact of an independent variable on a dependent variable in an experimental design, ignoring interaction effects.

Factor A

A term used in experimental design and analysis to denote one of potentially several independent variables being studied for its impact on a dependent variable.

Null Hypothesis

A statement in statistical analysis that proposes there is no significant difference or effect, intended to be tested against an alternative hypothesis.