Taveras Enterprises provides the following information related to its defined benefit pension plan.

Instructions

(a) Prepare the note disclosing the components of pension expense for the year 2015.

(b) Determine the amounts of other comprehensive income and comprehensive income for 2015. Net income for 2015 is €35,000.

(c) Compute the amount of accumulated other comprehensive income reported at December 31, 2015.

Transcribed Image Text:

Balances or Values at December 31, 2015 Defined benefit obligation 2,737,000 Fair value of plan assets 2,278,329 Accumulated OCI-Net loss (1/1/15 balance, -0-) 34,220 Other pension plan data: Service cost for 2015 94,000 Actual return on plan assets in 2015 130,000 Interest on January 1, 2015, defined benefit obligation 164,220 Contributions to plan in 2015 93,329 Benefits paid 140,000 Discount (interest) rate 6%