On January 1, 2019, a company's defined benefit pension plan had a projected benefit obligation (PBO)...

On January 1, 2019, a company's defined benefit pension plan had a projected benefit obligation (PBO) of $380,000. The fair value of its pension plan assets on January 1 was $350,000. During 2019, the company contributed $50,000 to the pension plan and paid pension benefits to retirees in the amount of $70,000. The settlement rate for the pension plan for 2019 was 12%. Service cost for the year was estimated to be $109,000. The expected rate of return on pension plan assets was 8%, but there was a negative actual return on pension plan assets of -10% due to risky investments that performed substantially worse than expected (i.e., there was an actual loss on pension plan assets of 10%). The beginning net actuarial gain in “AOCI—Actuarial Gains and Losses” was $37,000. How much, if any, of the company’s “AOCI-Actuarial Gains and Losses” will be amortized next year (i.e., in 2020), assuming the average remaining employee service period is 10 years? A. $2,560. B. $120. C. $946. D. $0. E. $750.

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ekkarill92 answered 2 years ago

At year end, a company has a defined benefit pension plan with a projected benefit obligation...

At year end, a company has a defined benefit pension plan with a projected benefit obligation of $350,000; a net gain of $140,000 that was not previously recognized in net periodic pension cost; and prior service cost of $210,000 that was not previously recognized in net periodic pension cost. What amount should be reported in accumulated other comprehensive income related to the company's defined benefit pension plan at year end? A credit balance of $420,000. A debit balance of $420,000....

At January 1, 2020, Headland Company had plan assets of $286,300 and a projected benefit obligation...

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On January 1, 2020, Ivanhoe Company has the following defined benefit pension plan balances. Projected benefit...

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On January 1, 2020, Tamarisk Company has the following defined benefit pension plan balances. Projected benefit obligation $4,460,000 Fair value of plan assets 4,150,000 The interest (settlement) rate applicable to the plan is 10%. On January 1, 2021, the company amends its pension agreement so that prior service costs of $503,000 are created. Other data related to the pension plan are as follows. 2020 2021 Service cost $150,000 $182,000 Prior service cost amortization 0 92,000 Contributions (funding) to the plan...

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On January 1, 2020, Harrington Company has the following defined benefit pension plan balances. Projected benefit...

On January 1, 2020, Harrington Company has the following defined benefit pension plan balances. Projected benefit obligation $4,500,000 Fair value of plan assets 4,200,000 The interest (settlement) rate applicable to the plan is 10%. On January 1, 2021, the company amends its pension agreement so that prior service costs of $500,000 are created. Other data related to the pension plan are as follows. 2020 2021 Service cost $150,000 $180,000 Prior service cost amortization 0 90,000 Contributions (funding) to the plan...

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