Use the same set of facts as in P14 7 In

Use the same set of facts as in P14 7 In

Use the same set of facts as in P14-7. In addition, assume that based on ERISA rules,
Magee Corporation must contribute the following amounts to the pension fund:
_______________2017 2018 2019 2020
Contributions.....$8,475..............$11,000........$15,000.........$18,000
Magee intends to fund the pension plan only to the extent required by ERISA rules.
Assume that the contributions to the pension fund earn exactly a 10% rate of return annually.
Required:
1. The CEO of the company, Reece Magee, is considering three possible discount rates (8%,
10%, and 12%) for calculating the annual pension expense. Provide schedules showing how
much pension expense will be reported under each of the three scenarios during the 2017-2021
period.
2. Provide schedules showing the funded status of the pension plan during the 2017-2020
period.
3. Magee is wondering which of the three discount rate assumptions would be considered the
most and least conservative for the purposes of determining net income. Prepare a schedule
that shows how total pension expense compares across the three discount rate assumptions.
Explain your results.

Use the same set of facts as in P14 7 In

SOLUTION-- http://solutiondone.online/downloads/use-the-same-set-of-facts-as-in-p14-7-in/

Unlock answers here solutiondone.online