Question

Can you solve part C Only becuse Part A&B is been solve

Exercise 20-17 (Part Level Submission)

Splish Company sponsors a defined benefit pension plan for its 600 employees. The company’s actuary provided the following information about the plan.

January 1, December 31, 2017 2017 2018 Projected benefit obligation $2,780,000 $3,626,200 $4,166,296 Accumulated benefit obligation 1,900,000 2,426,000 2,925,000 Plan assets (fair value and market-related asset value) 1,690,000 2,892,000 3,790,000 Accumulated net (gain) or loss (for purposes of the corridor calculation) 0 198,000 (24,000 ) Discount rate (current settlement rate) 9 % 8 % Actual and expected asset return rate 10 % 10 % Contributions 1,033,000 608,800 The average remaining service life per employee is 10.5 years. The service cost component of net periodic pension expense for employee services rendered amounted to $398,000 in 2017 and $472,000 in 2018. The accumulated OCI (PSC) on January 1, 2017, was $1,522,500. No benefits have been paid. Collapse question part

(a) Correct answer. Your answer is correct. Compute the amount of accumulated OCI (PSC) to be amortized as a component of net periodic pension expense for each of the years 2017 and 2018. Amount of accumulated OCI (PSC) to be amortized for the year 2017 $Entry field with correct answer 145000 Amount of accumulated OCI (PSC) to be amortized for the year 2018 $Entry field with correct answer 145000 Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT LINK TO TEXT Attempts: 1 of 3 used Collapse question part

(b) Correct answer. Your answer is correct. Prepare a schedule which reflects the amount of accumulated OCI (G/L) to be amortized as a component of pension expense for 2017 and 2018. Year Projected Benefit Obligation Plan Assets 10% Corridor Accumulated OCI (G/L) Minimum Amortization of (Gain) Loss 2017 $Entry field with correct answer 2780000 $Entry field with correct answer 1690000 $Entry field with correct answer 278000 $Entry field with correct answer $Entry field with correct answer 2018 Entry field with correct answer 3626200 Entry field with correct answer 2892000 Entry field with correct answer 362620 Entry field with correct answer 198000 Entry field with correct answer Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT LINK TO TEXT Attempts: 2 of 3 used Collapse question part

(c) Determine the total amount of pension expense to be recognized by Splish Company in 2017 and 2018. Pension expense for 2017 $ Pension expense for 2018 $

Answer 1

		Splish Company
			Jan 1,2017	Dec 31st 2017	Dec 31st,2018
		Project benefit obligation	$     27,80,000.00	$    36,26,200.00	$   41,66,296.00
		Accumulated benefit obligation	$     19,00,000.00	$    24,26,000.00	$   29,25,000.00
		Plan Assets(Fair Value and Market related assets value)	$     16,90,000.00	$    28,92,000.00	$   37,90,000.00
		Accumulated net(gain) or loss(for purposes of corridor calculation)		$      1,98,000.00	$       -24,000.00
		Discount Rate		9%	8%
		Actual and expected assets return rate		10%	10%
		Contributions		$    10,33,000.00	$     6,08,800.00
		Average remaining life per employee	10.5	Years
		Service Rendered in 2017	$        3,98,000.00
		Service Rendered in 2018	$        4,72,000.00
		The Accumulated OCI(PSC) on 1st Jan 2017	$     15,22,500.00
	Ans (C )	Pension Expense for 2017
		Service Cost	$        3,98,000.00
		Interest on Project Benefit Obligation($2780000*9%)	$        2,50,200.00
		Expected Return on Plan Assets($1690000*10%)	$      -1,69,000.00
		Amortization of prior service cost=($1522500/10.5)	$        1,45,000.00
		Pension Expense for 2017	$        6,24,200.00
		Pension Expense for 2018
		Service Cost	$        4,72,000.00
		Interest on Project Benefit Obligation($3626200*8%)	$        2,90,096.00
		Expected Return on Plan Assets($2892000*10%)	$      -2,89,200.00
		Amortization of prior service cost=($1260000/10.5)	$        1,45,000.00
		Pension Expense for 2018	$        6,17,896.00