Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts Industries
Question:
Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts Industries during 2021:
Prior service cost at Jan. 1, 2021, from plan amendment at the beginning of 2018 (amortization: $4 million per year) $28 million Net loss?AOCI at Jan. 1, 2021 (previous losses exceeded previous gains) $80 millionAverage remaining service life of the active employee group 10 yearsActuary?s discount rate 7%
Required:1. Determine Douglas-Roberts?s pension expense for 2021, and prepare the appropriate journal entry to record the expense.2. Prepare the appropriate journal entry(s) to record any 2021 gains and losses.3. Prepare the appropriate journal entry to record the cash contribution to plan assets.4. Prepare the appropriate journal entry to record retiree benefits.
Discount RateDepending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...
Step by Step Answer:
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas