ABC Company has a defined benefit pension plan. The following pension-related data were available for the...
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ABC Company has a defined benefit pension plan. The following pension-related data were available for the year 2021: PBO: Balance, Jan. 1 Service cost Interest cost (5% discount rate) Gain from changes in actuarial assumptions in 2021 Benefits paid to retirees Balance, Dec. 31 $235,000 36,000 11,750 (4,500) (15,000) $ 263,250 Plan assets: Balance, Jan.1 Actual return (expected return was $22,000) Contributions Benefits paid Balance, Dec. 31 January 1, 2021balances of other relevant accounts: Prior service cost-AOCI (need to amortize $1,000/yr.) Net gain-AOCI (corridor amortization, if any, over 15 years) $ 245,000 20,000 30,000 (15,000 $ 280,000 8,000 24,000 Required: Calculate the 2021 pension expense. Show steps and show calculation for corridor amortization. ABC Company has a defined benefit pension plan. The following pension-related data were available for the year 2021: PBO: Balance, Jan. 1 Service cost Interest cost (5% discount rate) Gain from changes in actuarial assumptions in 2021 Benefits paid to retirees Balance, Dec. 31 $235,000 36,000 11,750 (4,500) (15,000) $ 263,250 Plan assets: Balance, Jan.1 Actual return (expected return was $22,000) Contributions Benefits paid Balance, Dec. 31 January 1, 2021balances of other relevant accounts: Prior service cost-AOCI (need to amortize $1,000/yr.) Net gain-AOCI (corridor amortization, if any, over 15 years) $ 245,000 20,000 30,000 (15,000 $ 280,000 8,000 24,000 Required: Calculate the 2021 pension expense. Show steps and show calculation for corridor amortization.
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To calculate the 2021 pension expense for ABC Company we need to consider several components based on the information provided in the image We will fo... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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