Question

Question: Katie Day Company adopts acceptable accounting for its defined benefit pension plan on January 1,... Katie Day Company adopts acceptable accounting for its defined benefit pension plan on January 1, 2011, with the following beginning balances: plan assets $200,000, projected benefit obligation $200,000. Other data relating to 3 years’ operation of the plan are as follows. 2011 2012 2013 $ 16,000 $19,000 $ 26,000 a) Annual service cost b) Settlement rate and expected rate of return c) Actual return on plan assets 17,000 21,900 24,000 d) Annual contribution e) Benefits paid 10% | 10% | 10% 16,000 40,000 48,000 14,00016,40021,000 Unrecognized prior service cost (plan amended 1/1/12) g) Amortization of unrecognized prior service cost h) Change in actuarial assum est.12/31/2013 proj. benefit of: 160,000 54,40041,600 520,000 Compute the amount of gain or loss to be amortized, if any during the year 2014. Assume that average expected years of service is 8 years.

Answer 1

The amount of gain or loss to be amortized, if any during the year 2014 = $421.25

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