Saver Corporation amended its defined benefit pension plan at the beginning of its 2011 fiscal year, resulting in past service costs of $775,000 The vesting period for Saver Corporation is seven years The plan amendment is attributable to the following employees Employees with more than seven years...

Pension Expense for 2011 related to past service costs Immediate recog ...

Saver Corporation amended its defined benefit pension plan at the beginning of its 2011 fiscal year, resulting

Question:

Saver amended its defined benefit pension plan at the beginning of its 2011 fiscal year, resulting in past service costs of $775,000. The vesting period for Saver is seven years. The plan amendment is attributable to the following employees:
Employees with more than seven years’ service as at Jan. 1, 2011....$475,000
Employees with less than seven years’ service as at Jan. 1, 2011...$300,000
The average period until vesting for the employees with less than seven years’ experience is 3.5 years. Calculate the past service cost that will be included in the fiscal 2011 pension expense. Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...