Item$3$

$0\mathrm{.}4$points

eBook

Print

References

Check my workCheck My Work button is now enabled

Item $3$

Herring Wholesale Company has a defined benefit pension plan. On January $1,2024,$ the following pension related data were available:

$($$ in thousands$)$Net gain$$AOCI$ $240$Accumulated benefit obligation$1,370$Projected benefit obligation$1,800$Fair value of plan assets$1,300$Average remaining service period of active employees $($expected to remain constant for the next several years$)12$years

The rate of return on plan assets during $2024$ was $8\%,$ although it was expected to be $10\%.$ The actuary revised assumptions regarding the PBO at the end of the year, resulting in a $$25,000$ decrease in the estimate of that obligation.

Required:

Calculate any amortization of the net gain that should be included as a component of net pension expense for $2024.$

Assume the net pension expense for $2024,$ not including the amortization of the net gain component, is $$327,000.$ What is pension expense for the year?

Determine the net loss$$AOCI or net gain$$AOCI as of January $1,2025.$