Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / What is the pension expense for the following plan

What is the pension expense for the following plan

What is the pension expense for the following plan?

"The plan requires the company to contribute $500 for each of its 1,000 employees. The plan hopes to accumulate enough funds so that retirees receive $20,000 in the future; the company has no obligation to guarantee the investment returns."

A) $500

B) $20,000

C) $500,000

D) $20,000,000

 

3) Tener Company sponsors a defined contribution pension plan for its employees. The plan specifies that the company will contribute $2 for every dollar that an employee contributes to the plan. Employees are eligible to contribute up to 7% of their salary to the pension plan. During 2012, employees covered by the pension plan earned salaries totalling $42 million. Employee contributions to the pension totalled $2.1 million. Tener contributed $3 million to the plan during the year.

 

Requirement:

Provide the summary journal entry for Tener's pension plan for 2012.

 

 

View less »

Dec 12 2019 View more View Less

Answer (UnSolved)

question Get Solution

Related Questions