On January 1, 2018, a company reported a $6,000 unrecognized gain in the informal record of its

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On January 1, 2018, a company reported a $6,000 unrecognized gain in the informal record of its pension plan. During 2018 the following events occurred:
a. Actual return on plan assets was $8,000 and expected return was $10,000.
b. A gain of $4,000 was determined by the actuary at December 31, 2018, based on changes in actuarial assumptions.
The company amortizes unrecognized gains and losses on the straight-line basis over the average remaining service life of active employees (20 years). It does not recognize the minimum amortization. Further information on this plan follows:
Values At January 1. 2018 $50,000 30,000 December 31, 2018 $56,000 34,000 PBO. Fair value of plan assets

Required:
Compute amortization of unrecognized gain or loss for 2018 and 1999.

Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...
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Financial Reporting and Analysis

ISBN: 978-0078025679

6th edition

Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon

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