The Year 1 records for a defined benefit pension plan include the following information. All amounts have
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Question:
The Year 1 records for a defined benefit pension plan include the following information. All amounts have their expected direction.
Beginning balances: | |
Projected benefit obligation | 500 |
Plan assets | 400 |
Prior service cost | 42 |
Unrecognized pension losses | 110 |
Discount rate | 7% |
Expected rate of return | 8% |
Average remaining employee service life | 10 years |
Activity during the year: | |
Service cost | 70 |
Actual return on plan assets | 27 |
Retiree benefits paid | 23 |
Employer contributions | 31 |
Prior service cost recognized | 7 |
Gain on projected benefit obligation | 12 |
- Calculate Year 1 periodic pension cost and the Year 1 ending balances for the projected benefit obligation, plan assets, prior service cost and unrecognized pension losses. Note that this will require calculation of several other amounts.
- What is the minimum amount of pension losses that will be recognized in Year 2?
Related Book For
Fundamentals of Advanced Accounting
ISBN: 978-0077862237
6th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
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