FAR II FINAL

1. 1Information regarding the defined benefit pension plan of Glavin Industries included the following for 2021 ($ in millions):
   
   
   Plan assets, January 1 $ 210
   Retiree benefits paid (end of year) 150
   Actual return on plan assets 30
   Employer contributions to the pension plan (end of year) 126
   Expected rate of return on plan assets 10 %
   
   What was the amount of Glavin’s plan assets at December 31, 2021?

   1. A$156 million
   2. B$207 million
   3. C$216 million
   4. D$516 million
2. 2A statement of comprehensive income does not include:

   1. Areturn on plan assets.
   2. Blosses from the return on assets falling short of expectations.
   3. Cgains from changes in estimates regarding the PBO.
   4. Dnet income.
3. 3JL Health Services reported a net loss–AOCI in last year’s balance sheet. This year, the company revised its estimate of future salary levels causing its PBO estimate to decline by $24. Also, the $48 million actual return on plan assets was less than the $54 million expected return. As a result:

   1. Athe statement of comprehensive income will report a $6 million gain and a $24 million loss.
   2. Bthe net pension liability will increase by $18 million.
   3. Caccumulated other comprehensive income will increase by $18 million.
   4. Dthe net pension liability will decrease by $24 million.
4. 4On December 31, 2021, Staymore Inns’ accumulated postretirement benefit obligation was $273 million. Retiree benefits of $27 million were paid at the end of 2021. Service cost for 2021 is $63 million.
   
   Estimates and assumptions regarding future health care costs were revised in 2021, causing the actuary to revise downward the estimate of the APBO by $6 million. The actuary's discount rate is 8%. There were no other significant accounts related to the plan at the end of 2021.
   
   What was the accumulated postretirement benefit obligation at January 1, 2021?

   1. A$200 million
   2. B$210 million
   3. C$225 million
   4. D$273 million
5. 5Imagine Publishers, Inc. sponsors a postretirement plan providing health care benefits. The following information relates to the current year's activity of Imagine’s postretirement benefit plan:
   
   
   Service cost $ 120 million
   Actual and expected return on plan assets 30 million
   Interest cost 40 million
   Amortization of net loss 10 million
   Amortization of prior service cost 20 million
   Retiree benefits paid (end of year) 35 million
   
   What is Imagine’s postretirement benefit expense?

   1. A$140 million
   2. B$150 million
   3. C$160 million
   4. D$185 million
6. 6Starr Builders sponsors an unfunded postretirement plan providing health care benefits. The following information relates to the current year's activity of Starr’s postretirement benefit plan:
   
   
   Service cost $ 240 million
   Amortization of net gain–AOCI 20 million
   Prior service cost–AOCI none
   Retiree benefits paid (end of year) 60 million
   Postretirement benefit expense $ 300 million
   
   What is Starr’s interest cost for the year?

   1. A$40 million
   2. B$80 million
   3. C$60 million
   4. D$100 million

Beschreibung

Quiz am FAR II FINAL, erstellt von Evans Gawu am 18/08/2021.

Autor

Evans Gawu

Sprache

English

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