Question: Problem 17-14 (Algo) Relationship among pension elements [LO17-3, 17-4, 17-5, 17-6, 17-7, 17-8] The funded status of Hilton Paneling Incorporated's defined benefit pension plan and
Problem 17-14 (Algo) Relationship among pension elements [LO17-3, 17-4, 17-5, 17-6, 17-7, 17-8]
The funded status of Hilton Paneling Incorporated's defined benefit pension plan and the balances in prior service cost and the net gainpensions, are given below.
| ($ in thousands) | ||
|---|---|---|
| 2024 Beginning Balances | 2024 Ending Balances | |
| Projected benefit obligation | $ 3,100 | $ 3,301 |
| Plan assets | 3,200 | 3,471 |
| Funded status | 100 | 170 |
| Prior service costAOCI | 360 | 320 |
| Net gainAOCI | 370 | 325 |
Retirees were paid $262,000, and the employer contribution to the pension fund was $253,000 at the end of 2024. The expected rate of return on plan assets was 10%, and the actuarys discount rate is 7%. There were no changes in actuarial estimates and assumptions regarding the PBO.
Required:
- Determine the actual return on plan assets of 2024.
- Determine the loss or gain on plan assets of 2024.
- Determine the service cost of 2024.
- Determine the pension expense of 2024.
- Determine the average remaining service life of active employees (used to determine amortization of the net gain) for 2024.
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