Given the Following Information,compute December 31,2012 Projected Benefit Obligation (PBO)and

question 10

Essay

Given the following information,compute December 31,2012 projected benefit obligation (PBO)and fair market value (FMV)of plan assets for Eagan Company.
$\begin{array}{|l|r|}\hline \text { Prior service cost granted in a 2012 plan amendment } & \$ 115,000 \\\hline \text { Interest on PBO } & 73,000 \\\hline \text { Actual return on plan assets } & 101,000 \\\hline \text { Service cost } & 84,000 \\\hline \text { Contribution sent to plan trustee } & 62,000 \\\hline \text { Benefit payments to retirees } & 24,000 \\\hline \text { Liability loss (gain) } & (37,000) \\\hline \text { FMV of plan assets, January 1, 2012 } & 735,000 \\\hline \text { PBO, January 1, 2012 } & 814,000\\\hline\end{array}$
What amount of asset or liability will be reported on the balance sheet at December 31,2012?

Apply job-order costing methods to assign manufacturing costs to jobs.

Analyze and complete job-costing spreadsheets.

Prepare and understand the Schedule of Cost of Goods Sold.

Prepare income statements for manufacturing companies.

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Definitions:

Composite Depreciation Method

A method used to depreciate a group of assets that have different lives and uses as one single asset, applying a uniform depreciation rate.

Accumulated Depreciation

The total depreciation that has been recorded for an asset over its useful life.

Gain On Sale

The profit earned from the sale of an asset above its book value.

GAAP

A set of widespread accounting rules and standards, referred to as Generally Accepted Accounting Principles, used for financial reporting.