Computing Pension Expense, Gain Loss Amortization, PBO, and Plan Asset Balances The following data relate to a defined benefit pension plan for Hollistir Co Fair value of plan assets, Jan 1, 2020 $9,600 PBO Jan 1, 2020, not including any items below 12,000 PSC from amendment dated Jan 1, 2020, (10 years is the amortization period) 6,000 Gain from change in actuarial assumptions, computed as of Jan 1, 2020 1,800 Actual return on plan assets, 2020 1,200 Contributions to plan assets in 2020 2,400 Benefits paid to retirees in 2020 3,000 Service cost for 2020 5,400 Discount rate 8 Expected rate of return on plan assets 10 Required a Compute pension expense for 2020 Hollistir amortizes the full pension gain loss over average service life of 15 years, using the straight line method Pension expense, 2020 Answer b Compute PBO at December 31, 2020 PBO, Dec 31, 2020 Answer c Compute fair value of plan assets at December 31, 2020 Fair value of plan assets, Dec 31, 2020 Answer

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Question: Computing Pension Expense, Gain/Loss Amortization, PBO, and Plan Asset Balances The following data relate to a defined benefit pension plan for Hollistir Co. Fair value

Computing Pension Expense, Gain/Loss Amortization, PBO, and Plan Asset Balances

The following data relate to a defined benefit pension plan for Hollistir Co.

Fair value of plan assets, Jan. 1, 2020	$9,600
PBO Jan. 1, 2020, not including any items below	12,000
PSC from amendment dated Jan. 1, 2020, (10 years is the amortization period)	6,000
Gain from change in actuarial assumptions, computed as of Jan. 1, 2020	1,800
Actual return on plan assets, 2020	1,200
Contributions to plan assets in 2020	2,400
Benefits paid to retirees in 2020	3,000
Service cost for 2020	5,400
Discount rate	8%
Expected rate of return on plan assets	10%

Required

a. Compute pension expense for 2020. Hollistir amortizes the full pension gain/loss over average service life of 15 years, using the straight-line method.

Pension expense, 2020

Answer

b. Compute PBO at December 31, 2020.

PBO, Dec. 31, 2020

Answer

c. Compute fair value of plan assets at December 31, 2020.

Fair value of plan assets, Dec. 31, 2020

Answer

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