Question

Cummings Inc. had the following reconciliation at December 31, 2014:
Fair value of plan assets ............ $5,000
PBO .................... 4,200
Funded status ................ $ 800
AOCI—prior service cost ............. $ 300
AOCI—net actuarial (gain) loss ........... 700
Total ..................... $1,000

The following assumptions are being used for the pension plan in 2015:
Discount rate ................... 5%
Expected rate of return on assets ............ 8%
Average remaining worklife ............ 10 years
Remaining amortization period for prior service costs . 6 years
Additional 2015 Information:
Service cost ................... $442
Cash contributed to the plan (year-end) ........ 250
Pension benefits paid by the plan (year-end) ...... 465
Actual return on plan assets ............. 650
New actuarial (gain) loss on the PBO ........... 64

Required:
1. Compute pension expense for 2015.
2. Compute the fair value of plan assets at December 31, 2015.
3. Compute the PBO at December 31, 2015.
4. Compute AOCI—net actuarial (gain) loss as of December 31, 2015.



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  • CreatedSeptember 10, 2014
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