Hicks Cable Company has a defined benefit pension plan. Threealternative possibilities for pension-related data at...
Hicks Cable Company has a defined benefit pension plan. Three
alternative possibilities for pension-related data at January 1,
2021, are shown below:
| ($ in thousands) | |||||||||
| Case 1 | Case 2 | Case 3 | |||||||
| Net loss (gain)—AOCI, Jan. 1 | $ | 323 | $ | (343 | ) | $ | 263 | ||
| 2021 loss (gain) on plan assets | (14 | ) | (11 | ) | 5 | ||||
| 2021 loss (gain) on PBO | (26 | ) | 19 | (268 | ) | ||||
| Accumulated benefit obligation, Jan. 1 | (2,980 | ) | (2,580 | ) | (1,480 | ) | |||
| Projected benefit obligation, Jan. 1 | (3,340 | ) | (2,700 | ) | (1,730 | ) | |||
| Fair value of plan assets, Jan. 1 | 2,830 | 2,730 | 1,580 | ||||||
| Average remaining service period of active employees (years) | 12 | 14 | 9 | ||||||
Required:
1. For each independent case, calculate any
amortization of the net loss or gain that should be included as a
component of pension expense for 2021.
2. For each independent case, determine the net
loss—AOCI or net gain—AOCI as of January 1, 2022.
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Hicks Cable Company has a defined benefit pension plan. Threealternative possibilities for pension-related data at...
Hicks Cable Company has a defined benefit pension plan. Three alternative possibilities for pension-related data at Janu...
Hicks Cable Company has a defined benefit pension plan. Three alternative possibilities for pension-related data at January 1, 2018, are shown below: ($ in 000's) CASE 1 CASE 2 CASE 3 Net loss (gain)–AOCI, Jan. 1 $320 ($330) $260 2018 loss (gain) on plan assets (11) (8) 2 2018 loss (gain) on PBO (23) 16 (265) Accumulated benefit obligation, Jan (2,950) (2,550) (1,450) Projected benefit obligation, Jan. 1 (3,310) (2,670) (1,700) Fair value of plan assets, Jan. 1 2,800 2,700...
Herring Wholesale Company has a defined benefit pension plan. On January 1, 2018, the following pension related data wer...
Herring Wholesale Company has a defined benefit pension plan. On January 1, 2018, the following pension related data were available: ($ in 000s) Net gain–AOCI $349 Accumulated benefit obligation 3,070 Projected benefit obligation 3,100 Fair value of plan assets 2,600 Average remaining service period of active employees (expected to remain constant for the next several years) 13 years The rate of return on plan assets during 2018 was 9%, although it was expected to be 10%. The actuary revised assumptions...
Herring Wholesale Company has a defined benefit pension plan. On January 1, 2018, the following pension related data we...
Herring Wholesale Company has a defined benefit pension plan. On January 1, 2018, the following pension related data were available: Net gain-AOCI Accumulated benefit obligation Projected benefit obligation Fair value of plan assets Average remaining service period of active employees (expected to remain constant for the next several years) ($ in 000 s) $240 1,370 1,800 1,300 12years The rate of return on plan assets during 2018 was 8%, although it was expected to be 10%. The actuary revised assumptions...
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Beale Management has a noncontributory, defined benefit pension plan. On December 31, 2021 (the end of Beale's fiscal year), the following pension-related data were available: Projected Benefit Obligation ($ in millions) Balance, January 1, 2021 $ 780 Service cost 80 Interest cost, discount rate, 5% 39 Gain due to changes in actuarial assumptions in 2021 (23 ) Pension benefits paid (39 ) Balance, December 31, 2021 $ 837 Plan Assets ($ in millions) Balance, January 1, 2021 $ 820 Actual...
The following pension-related data pertain to Metro Recreation's noncontributory, defined benefit pension plan for 2018: ($...
The following pension-related data pertain to Metro Recreation's noncontributory, defined benefit pension plan for 2018: ($ in 200s) Jan. 1 Dec. 31 $4,900 $5,180 3,755 4,030 5,730 6,175 Projected benefit obligation Accumulated benefit obligation Plan assets (fair value) Interest (discount) rate, 8% Expected return on plan assets, 10% Prior service cost-AOCI (from Dec. 31, 2017, amendment) Net loss-AOCI Average remaining service life: 10 years Gain due to changes in actuarial assumptions Contributions to pension fund (end of year) Pension benefits...
The following pension-related data pertain to Metro Recreation's noncontributory, defined benefit pension plan for 2018: ($...
The following pension-related data pertain to Metro Recreation's
noncontributory, defined benefit pension plan for 2018: ($ in
000s)
Jan. 1 Dec. 31
Projected benefit obligation $ 4,400 $ 4,680
Accumulated benefit obligation 3,730 3,980
Plan assets (fair value) 4,980 5,425
Interest (discount) rate, 6%
Expected return on plan assets, 10%
Prior service cost−AOCI (from Dec. 31, 2017, amendment) 870
Net loss−AOCI 518
Average remaining service life: 10 years
Gain due to changes in actuarial assumptions 44
Contributions to pension fund...
12 Herring Wholesale Company has a defined benefit pension plan. On January 1, 2018, the following...
12 Herring Wholesale Company has a defined benefit pension plan. On January 1, 2018, the following pension related data were available: 10 points (s in 000s) Net gain-AOCI Accumulated benefit obligation Projected benefit obligation Fair value of plan assets Average remaining service period of active employees (expected to remain constant for the next several years) $280 2,070 2,100 1,600 Skipped 14years eBook The rate of return on plan assets during 2018 was 8%, although it was expected to be 10%....
Carolina Consulting Company has a defined benefit pension plan. The following pension-related data were available for...
Carolina Consulting Company has a defined benefit pension plan. The following pension-related data were available for the current calendar year: $241,000 42,000 12,050 (5,100) (21,000) $268,950 PBO: Balance, Jan. 1 Service cost Interest cost (5% discount rate) Gain from changes in actuarial assumptions in 2021 Benefits paid to retirees Balance, Dec. 31 Plan assets: Balance, Jan. 1 Actual return (expected return was $22,600) Contributions Benefits paid Balance, Dec. 31 ABO, Dec. 31 January 1, 2021, balances: Prior service cost-AOCI (amortization...
Preparing Pension Entries and Pension Worksheet Rollo Company has a defined benefit pension plan. At the...
Preparing Pension Entries and Pension Worksheet Rollo Company has a defined benefit pension plan. At the end of the current reporting period, December 31, 2020, the following information was available: Projected benefit obligation Balance, Jan. 1, 2020 $300,000 Service cost 80,000 Interest cost ($150,000 x 10% discount rate) 30,000 Change in actuarial assumptions on Dec. 31, 2020 (800) Pension benefits paid (84,000) Balance, Dec. 31, 2020 $325,200 Accumulated benefit obligation $240,000 Vested benefit obligation $80,000 Plan assets Balance, Jan. 1,...
Case 3 $ 289 Net loss (gain)-AOCI, Jan. 1 2018 loss (gain) on plan assets 2018 loss (gain) on PBO Accumulated benefit...
Case 3 $ 289 Net loss (gain)-AOCI, Jan. 1 2018 loss (gain) on plan assets 2018 loss (gain) on PBO Accumulated benefit obligation, Jan. 1 Projected benefit obligation, Jan. 1 Fair value of plan assets, Jan. 1 Average remaining service period of active employees (years) Case 1 $ 339 (30) (42) (3,140) (3,500) 2,990 ($ in 800's) Case 2 $ (417) (27) 35 (2,740) (2,860) 2,890 (298) (1,640) (1,890) 1,740 14 16 10 We were unable to transcribe this imageRequired...
Herring Wholesale Company has a defined benefit pension plan. On January 1, 2018, the following pension related data were available: Net gain-AOCI Accumulated benefit obligation Projected benefit obligation Fair value of plan assets Average remaining service period of active employees (expected to remain constant for the next several years) ($ in 000 s) $240 1,370 1,800 1,300 12years The rate of return on plan assets during 2018 was 8%, although it was expected to be 10%. The actuary revised assumptions...
The following pension-related data pertain to Metro Recreation's noncontributory, defined benefit pension plan for 2018: ($ in 200s) Jan. 1 Dec. 31 $4,900 $5,180 3,755 4,030 5,730 6,175 Projected benefit obligation Accumulated benefit obligation Plan assets (fair value) Interest (discount) rate, 8% Expected return on plan assets, 10% Prior service cost-AOCI (from Dec. 31, 2017, amendment) Net loss-AOCI Average remaining service life: 10 years Gain due to changes in actuarial assumptions Contributions to pension fund (end of year) Pension benefits...
The following pension-related data pertain to Metro Recreation's
noncontributory, defined benefit pension plan for 2018: ($ in
000s)
Jan. 1 Dec. 31
Projected benefit obligation $ 4,400 $ 4,680
Accumulated benefit obligation 3,730 3,980
Plan assets (fair value) 4,980 5,425
Interest (discount) rate, 6%
Expected return on plan assets, 10%
Prior service cost−AOCI (from Dec. 31, 2017, amendment) 870
Net loss−AOCI 518
Average remaining service life: 10 years
Gain due to changes in actuarial assumptions 44
Contributions to pension fund...
12 Herring Wholesale Company has a defined benefit pension plan. On January 1, 2018, the following pension related data were available: 10 points (s in 000s) Net gain-AOCI Accumulated benefit obligation Projected benefit obligation Fair value of plan assets Average remaining service period of active employees (expected to remain constant for the next several years) $280 2,070 2,100 1,600 Skipped 14years eBook The rate of return on plan assets during 2018 was 8%, although it was expected to be 10%....
Carolina Consulting Company has a defined benefit pension plan. The following pension-related data were available for the current calendar year: $241,000 42,000 12,050 (5,100) (21,000) $268,950 PBO: Balance, Jan. 1 Service cost Interest cost (5% discount rate) Gain from changes in actuarial assumptions in 2021 Benefits paid to retirees Balance, Dec. 31 Plan assets: Balance, Jan. 1 Actual return (expected return was $22,600) Contributions Benefits paid Balance, Dec. 31 ABO, Dec. 31 January 1, 2021, balances: Prior service cost-AOCI (amortization...
Preparing Pension Entries and Pension Worksheet Rollo Company has a defined benefit pension plan. At the end of the current reporting period, December 31, 2020, the following information was available: Projected benefit obligation Balance, Jan. 1, 2020 $300,000 Service cost 80,000 Interest cost ($150,000 x 10% discount rate) 30,000 Change in actuarial assumptions on Dec. 31, 2020 (800) Pension benefits paid (84,000) Balance, Dec. 31, 2020 $325,200 Accumulated benefit obligation $240,000 Vested benefit obligation $80,000 Plan assets Balance, Jan. 1,...
Case 3 $ 289 Net loss (gain)-AOCI, Jan. 1 2018 loss (gain) on plan assets 2018 loss (gain) on PBO Accumulated benefit obligation, Jan. 1 Projected benefit obligation, Jan. 1 Fair value of plan assets, Jan. 1 Average remaining service period of active employees (years) Case 1 $ 339 (30) (42) (3,140) (3,500) 2,990 ($ in 800's) Case 2 $ (417) (27) 35 (2,740) (2,860) 2,890 (298) (1,640) (1,890) 1,740 14 16 10 We were unable to transcribe this imageRequired...
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