ACC 577 OUTLET Great Stories /acc577outlet.com ACC 577 OUTLET Great Stories /acc577outlet.com | Page 47

At 1/1/x6, there is no net gain or loss for a defined benefit pension
plan, and plan assets at market value are $45,000. At 12/31/x6
before any actuarial gain or loss is computed (but after pension
expense has been recorded and funding has occurred), the
following data apply: PBO, $50,000Assets at market value,
$40,000Expected rate of return on assets, 10% Actual return,
$3,000A $2,000 actuarial gain is determined at 12/31/x6.By what
amount is the Pension Gain/Loss-OCI account changed in 20x6?
And what portion of that change is subject to amortization in
20x7?
Question 7
Graf Corp.'s 2005 income statement showed pretax accounting
income of $200,000. To compute the federal income tax liability,
the following 2005 data are provided: If the alternate minimum
tax provisions are ignored, what amount of current federal
income tax liability should be included in Graf's December 31,
2005 balance sheet?
Question 8
The following information relates to a postretirement benefit plan
(in millions): APBO beginning, $300Plan assets beginning,
$100Net postretirement benefit gain, beginning, $20Amortization
of net gain or loss is based on SL method, 10 year average
remaining service periodPrior service cost, initial amount,
recognized four years ago, $50Amortization of prior service cost
is based on SL method, 10 year average remaining service
periodService cost, $40Discount rate, 5%Expected rate of return,
6%Actual re turn, $10Change in estimated life expectancy caused
a gain of $16, year-endFunding contribution, $20. What amount
of net gain is subject to amortization next year?