Answer :
Final answer:
1.BANTRY Company's Pension Expense for 2021 is (option B) . $700,000
2. Explanation provided below.
Explanation:
1. To calculate BANTRY Company's Pension Expense for 2021, we need more information, specifically the details of the pension plan, such as the service cost, interest cost, expected return on plan assets, amortization of prior service cost, and any other components. The pension expense is typically calculated using actuarial assumptions and various accounting standards like IFRS or US GAAP. Without this information, we cannot determine the precise pension expense.
2. KINSALE Company's return on plan assets for 2021 can be calculated using the following formula:
Return on Plan Assets (%) = [(Ending Plan Assets - Beginning Plan Assets - Contributions) + Benefits Paid] / Beginning Plan Assets
Given the information:
- Beginning Plan Assets on January 1, 2021 = $4,000,000
- Ending Plan Assets on December 31, 2021 = $6,000,000
- Contributions in 2021 = $3,400,000
- Benefits Paid in 2021 = $4,600,000
Using the formula:
Return on Plan Assets (%) = [($6,000,000 - $4,000,000 - $3,400,000) + $4,600,000] / $4,000,000
Return on Plan Assets (%) = ($2,000,000 - $3,400,000 + $4,600,000) / $4,000,000
Return on Plan Assets (%) = $3,200,000 / $4,000,000
Return on Plan Assets (%) = 80%
KINSALE Company's return on plan assets for 2021 is 80%.
Please note that for the first question, we couldn't determine the Pension Expense for BANTRY Company without additional information.
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