Retirement Benefits - CPA Financial Accounting and Reporting (FAR)
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Under state law, Warner Company pays 2% of eligible gross wages for unemployment insurance. Eligible gross wages are defined as the first $12,000 of wages earned by each employee during a year. Warner had 5 employees, each of whom earned $40,000 during Year 2. What will Warner record as unemployment insurance expense for the year?
Under state law, Warner Company pays 2% of eligible gross wages for unemployment insurance. Eligible gross wages are defined as the first $12,000 of wages earned by each employee during a year. Warner had 5 employees, each of whom earned $40,000 during Year 2. What will Warner record as unemployment insurance expense for the year?
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Warner will calculate unemployment tax on the first $12K of wages for each of the five employees. $12K x 5 employees x 2%.
Warner will calculate unemployment tax on the first $12K of wages for each of the five employees. $12K x 5 employees x 2%.
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Gable Corp is obligated to pay its CEO a year-end bonus equal to 5% of the company's income after the deduction of the bonus and before income tax. Gable's income before the bonus and income tax for Year 1 was $125,000 and Gable's income tax rate was 30%. What amount should Gable accrue in Year 1 for the CEO's bonus?
Gable Corp is obligated to pay its CEO a year-end bonus equal to 5% of the company's income after the deduction of the bonus and before income tax. Gable's income before the bonus and income tax for Year 1 was $125,000 and Gable's income tax rate was 30%. What amount should Gable accrue in Year 1 for the CEO's bonus?
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The bonus must be equal to 5% of the company's income after considering the bonus. Therefore, B = .05 x ($125K - B). The bonus can be calculated by solving for B.
The bonus must be equal to 5% of the company's income after considering the bonus. Therefore, B = .05 x ($125K - B). The bonus can be calculated by solving for B.
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On January 3, Year 2, Lamar Corporation pays gross wages to its employees totaling $200,000. Employees of Lamar get paid every two weeks, and each pay period is also two weeks. What amount of wage expense should Lamar accrue as a liability at December 31, Year 1?
On January 3, Year 2, Lamar Corporation pays gross wages to its employees totaling $200,000. Employees of Lamar get paid every two weeks, and each pay period is also two weeks. What amount of wage expense should Lamar accrue as a liability at December 31, Year 1?
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If each paycheck, includes $200K in wages, that means each day includes $14,286 in wages ($200K / 14 days). The last paycheck of Year 1 includes 11 days (because the last 3 days occurred in Year 2). So the total accrual balance is $14,286 x 11 days.
If each paycheck, includes $200K in wages, that means each day includes $14,286 in wages ($200K / 14 days). The last paycheck of Year 1 includes 11 days (because the last 3 days occurred in Year 2). So the total accrual balance is $14,286 x 11 days.
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All of these costs except per capita claims are included in other benefits such as pensions.
All of these costs except per capita claims are included in other benefits such as pensions.
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Of the following costs, which is unique to postretirement health care benefits?
Of the following costs, which is unique to postretirement health care benefits?
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Actuarial assumptions and the accumulated postretirement benefit obligation must be disclosed.
Actuarial assumptions and the accumulated postretirement benefit obligation must be disclosed.
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Which of the following facts about health care benefits should be disclosure? A) the assumed healthcare cost trend rate used to measure the expected cost of benefits covered by the plan B) The accumulated postretirement benefit obligation
Which of the following facts about health care benefits should be disclosure? A) the assumed healthcare cost trend rate used to measure the expected cost of benefits covered by the plan B) The accumulated postretirement benefit obligation
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Where should the funded status of a defined benefit pension plan be reported?
Where should the funded status of a defined benefit pension plan be reported?
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The funded status of a company pension plan should be reported on the statement of financial position as an asset or liability depending on the status.
The funded status of a company pension plan should be reported on the statement of financial position as an asset or liability depending on the status.
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Under state law, Warner Company pays 2% of eligible gross wages for unemployment insurance. Eligible gross wages are defined as the first $12,000 of wages earned by each employee during a year. Warner had 5 employees, each of whom earned $40,000 during Year 2. What will Warner record as unemployment insurance expense for the year?
Under state law, Warner Company pays 2% of eligible gross wages for unemployment insurance. Eligible gross wages are defined as the first $12,000 of wages earned by each employee during a year. Warner had 5 employees, each of whom earned $40,000 during Year 2. What will Warner record as unemployment insurance expense for the year?
Tap to reveal answer
Warner will calculate unemployment tax on the first $12K of wages for each of the five employees. $12K x 5 employees x 2%.
Warner will calculate unemployment tax on the first $12K of wages for each of the five employees. $12K x 5 employees x 2%.
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Gable Corp is obligated to pay its CEO a year-end bonus equal to 5% of the company's income after the deduction of the bonus and before income tax. Gable's income before the bonus and income tax for Year 1 was $125,000 and Gable's income tax rate was 30%. What amount should Gable accrue in Year 1 for the CEO's bonus?
Gable Corp is obligated to pay its CEO a year-end bonus equal to 5% of the company's income after the deduction of the bonus and before income tax. Gable's income before the bonus and income tax for Year 1 was $125,000 and Gable's income tax rate was 30%. What amount should Gable accrue in Year 1 for the CEO's bonus?
Tap to reveal answer
The bonus must be equal to 5% of the company's income after considering the bonus. Therefore, B = .05 x ($125K - B). The bonus can be calculated by solving for B.
The bonus must be equal to 5% of the company's income after considering the bonus. Therefore, B = .05 x ($125K - B). The bonus can be calculated by solving for B.
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On January 3, Year 2, Lamar Corporation pays gross wages to its employees totaling $200,000. Employees of Lamar get paid every two weeks, and each pay period is also two weeks. What amount of wage expense should Lamar accrue as a liability at December 31, Year 1?
On January 3, Year 2, Lamar Corporation pays gross wages to its employees totaling $200,000. Employees of Lamar get paid every two weeks, and each pay period is also two weeks. What amount of wage expense should Lamar accrue as a liability at December 31, Year 1?
Tap to reveal answer
If each paycheck, includes $200K in wages, that means each day includes $14,286 in wages ($200K / 14 days). The last paycheck of Year 1 includes 11 days (because the last 3 days occurred in Year 2). So the total accrual balance is $14,286 x 11 days.
If each paycheck, includes $200K in wages, that means each day includes $14,286 in wages ($200K / 14 days). The last paycheck of Year 1 includes 11 days (because the last 3 days occurred in Year 2). So the total accrual balance is $14,286 x 11 days.
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All of these costs except per capita claims are included in other benefits such as pensions.
All of these costs except per capita claims are included in other benefits such as pensions.
Tap to reveal answer
Of the following costs, which is unique to postretirement health care benefits?
Of the following costs, which is unique to postretirement health care benefits?
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Actuarial assumptions and the accumulated postretirement benefit obligation must be disclosed.
Actuarial assumptions and the accumulated postretirement benefit obligation must be disclosed.
Tap to reveal answer
Which of the following facts about health care benefits should be disclosure? A) the assumed healthcare cost trend rate used to measure the expected cost of benefits covered by the plan B) The accumulated postretirement benefit obligation
Which of the following facts about health care benefits should be disclosure? A) the assumed healthcare cost trend rate used to measure the expected cost of benefits covered by the plan B) The accumulated postretirement benefit obligation
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Where should the funded status of a defined benefit pension plan be reported?
Where should the funded status of a defined benefit pension plan be reported?
Tap to reveal answer
The funded status of a company pension plan should be reported on the statement of financial position as an asset or liability depending on the status.
The funded status of a company pension plan should be reported on the statement of financial position as an asset or liability depending on the status.
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Under state law, Warner Company pays 2% of eligible gross wages for unemployment insurance. Eligible gross wages are defined as the first $12,000 of wages earned by each employee during a year. Warner had 5 employees, each of whom earned $40,000 during Year 2. What will Warner record as unemployment insurance expense for the year?
Under state law, Warner Company pays 2% of eligible gross wages for unemployment insurance. Eligible gross wages are defined as the first $12,000 of wages earned by each employee during a year. Warner had 5 employees, each of whom earned $40,000 during Year 2. What will Warner record as unemployment insurance expense for the year?
Tap to reveal answer
Warner will calculate unemployment tax on the first $12K of wages for each of the five employees. $12K x 5 employees x 2%.
Warner will calculate unemployment tax on the first $12K of wages for each of the five employees. $12K x 5 employees x 2%.
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Gable Corp is obligated to pay its CEO a year-end bonus equal to 5% of the company's income after the deduction of the bonus and before income tax. Gable's income before the bonus and income tax for Year 1 was $125,000 and Gable's income tax rate was 30%. What amount should Gable accrue in Year 1 for the CEO's bonus?
Gable Corp is obligated to pay its CEO a year-end bonus equal to 5% of the company's income after the deduction of the bonus and before income tax. Gable's income before the bonus and income tax for Year 1 was $125,000 and Gable's income tax rate was 30%. What amount should Gable accrue in Year 1 for the CEO's bonus?
Tap to reveal answer
The bonus must be equal to 5% of the company's income after considering the bonus. Therefore, B = .05 x ($125K - B). The bonus can be calculated by solving for B.
The bonus must be equal to 5% of the company's income after considering the bonus. Therefore, B = .05 x ($125K - B). The bonus can be calculated by solving for B.
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On January 3, Year 2, Lamar Corporation pays gross wages to its employees totaling $200,000. Employees of Lamar get paid every two weeks, and each pay period is also two weeks. What amount of wage expense should Lamar accrue as a liability at December 31, Year 1?
On January 3, Year 2, Lamar Corporation pays gross wages to its employees totaling $200,000. Employees of Lamar get paid every two weeks, and each pay period is also two weeks. What amount of wage expense should Lamar accrue as a liability at December 31, Year 1?
Tap to reveal answer
If each paycheck, includes $200K in wages, that means each day includes $14,286 in wages ($200K / 14 days). The last paycheck of Year 1 includes 11 days (because the last 3 days occurred in Year 2). So the total accrual balance is $14,286 x 11 days.
If each paycheck, includes $200K in wages, that means each day includes $14,286 in wages ($200K / 14 days). The last paycheck of Year 1 includes 11 days (because the last 3 days occurred in Year 2). So the total accrual balance is $14,286 x 11 days.
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All of these costs except per capita claims are included in other benefits such as pensions.
All of these costs except per capita claims are included in other benefits such as pensions.
Tap to reveal answer
Of the following costs, which is unique to postretirement health care benefits?
Of the following costs, which is unique to postretirement health care benefits?
← Didn't Know|Knew It →
Actuarial assumptions and the accumulated postretirement benefit obligation must be disclosed.
Actuarial assumptions and the accumulated postretirement benefit obligation must be disclosed.
Tap to reveal answer
Which of the following facts about health care benefits should be disclosure? A) the assumed healthcare cost trend rate used to measure the expected cost of benefits covered by the plan B) The accumulated postretirement benefit obligation
Which of the following facts about health care benefits should be disclosure? A) the assumed healthcare cost trend rate used to measure the expected cost of benefits covered by the plan B) The accumulated postretirement benefit obligation
← Didn't Know|Knew It →
Where should the funded status of a defined benefit pension plan be reported?
Where should the funded status of a defined benefit pension plan be reported?
Tap to reveal answer
The funded status of a company pension plan should be reported on the statement of financial position as an asset or liability depending on the status.
The funded status of a company pension plan should be reported on the statement of financial position as an asset or liability depending on the status.
← Didn't Know|Knew It →
Under state law, Warner Company pays 2% of eligible gross wages for unemployment insurance. Eligible gross wages are defined as the first $12,000 of wages earned by each employee during a year. Warner had 5 employees, each of whom earned $40,000 during Year 2. What will Warner record as unemployment insurance expense for the year?
Under state law, Warner Company pays 2% of eligible gross wages for unemployment insurance. Eligible gross wages are defined as the first $12,000 of wages earned by each employee during a year. Warner had 5 employees, each of whom earned $40,000 during Year 2. What will Warner record as unemployment insurance expense for the year?
Tap to reveal answer
Warner will calculate unemployment tax on the first $12K of wages for each of the five employees. $12K x 5 employees x 2%.
Warner will calculate unemployment tax on the first $12K of wages for each of the five employees. $12K x 5 employees x 2%.
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Gable Corp is obligated to pay its CEO a year-end bonus equal to 5% of the company's income after the deduction of the bonus and before income tax. Gable's income before the bonus and income tax for Year 1 was $125,000 and Gable's income tax rate was 30%. What amount should Gable accrue in Year 1 for the CEO's bonus?
Gable Corp is obligated to pay its CEO a year-end bonus equal to 5% of the company's income after the deduction of the bonus and before income tax. Gable's income before the bonus and income tax for Year 1 was $125,000 and Gable's income tax rate was 30%. What amount should Gable accrue in Year 1 for the CEO's bonus?
Tap to reveal answer
The bonus must be equal to 5% of the company's income after considering the bonus. Therefore, B = .05 x ($125K - B). The bonus can be calculated by solving for B.
The bonus must be equal to 5% of the company's income after considering the bonus. Therefore, B = .05 x ($125K - B). The bonus can be calculated by solving for B.
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