Hicks Cable Company has a defined benefit pension plan. Three alternative possibilities for pension-related data at January
Question:
Hicks Cable Company has a defined benefit pension plan. Three alternative possibilities for pension-related data at January 1, 2021, are shown below:
Required:1. For each independent case, calculate any amortization of the net loss or gain that should be included as a component of pension expense for 2021.2. For each independent case, determine the net loss?AOCI or net gain?AOCI as of January 1, 2022.
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($ in thousands) Case 3 Case 1 Case 2 Net loss (gain)-AOCI, Jan. 1 2021 loss (gain) on plan assets 2021 loss (gain) on PBO Accumulated benefit obligation, Jan. Projected benefit obligation, Jan. 1 Fair value of plan assets, Jan. 1 Average remaining service period of active employees (years) $ 320 (330) (8) $ 260 (11) (23) (2,950) (3,310) 2 (265) (1,450) (1,700) 1,550 16 (2,550) (2,670) 1 2,700 2,800 12 15 10
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Requirement 1 10 times either the PBO or plan assets beginning of the year whichever is larger Ca...View the full answer
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Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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