Question

Whispering Company sponsors a defined benefit pension plan for its 600 employees. The company's actuary provided the following information about the plan. January December 31, 2017 2017 2018 $2,810,000 $3,661,900 2,413,000 $4,202,852 2,901,000 1,880,000 1,690,000 2,898,000 3,799,000 Projected benefit obligation Accumulated benefit obligation Plan assets (fair value and market-related asset value) Accumulated net (gain) or loss (for purposes of the corridor calculation) Discount rate (current settlement rate) Actual and expected asset return rate Contributions 0 198,000 (24,000) 9% 104 1,039,000 8% 10% 611,200 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 $401,000 in 2017 and $470,000 in 2018. The accumulated OCI (PSC) on January 1, 2017, was $1,333,500. No benefits have been paid.

Answer 1

Page 1 Solo- year Prisl segvice cott Amortized 2017 $ ($ 1,333,500 + 10.5 years) 283000 2018 $ 368070 ($1,333,500 +10.5 years) (b) The excess of the accumulated oci (ALL) ove or the Carrido amount yj amortized tay dividing the Exceys by the average remaining service tij e per employee The average Sevivice life og 10.5. years. Het Amount 31 Amoitization of net (com j Lobs Cain lot Fôi the year ended pecembea 1 2017 Gain or loss for the year ended 2018 Gains con for the year ended ($198000) ($25000) As per the 187 the given problem . Amplization of net (gain tos) 2017 and 2018 ( $198000); ($951000) .

For the year 2014 and are $9,810,000 and Page - 2 2016 poroject bentit Obligation $3661,000 and 2018 4,202,862 and The plan ofset =) 1,690,000 and 9,898,000 2018, 3;799,000 2014 (9):10.1. Acetual . and Expected Rate : 9,810,000 x 10 Expected Rate - 281000 (6) F81.2011(b) : 3,661,000 x 10 100 Expected Ratet 366,100 pool. Actual and expected Rate : 412021859 x 16 Expected rate + 420,285.9 2018" 100 Year tot 07288 (b) Accumiated minimum Amari loci ( L)( a zation of Calon (641 I projected Plan benkit obligal Agjet la) 2017 (a)t2,810,000 1,690,000 [1743661,900 3,898,000 .(80) $-0 - 966100 -O-(0) you $4,202, 859 21901,000 420,285.9 / 198.000

- page!-3 Page 1-3 the projected (a) As of the begining of the year (b) the traida ys 10% of the greater of benfit obligation or plan asset (c) $ 420,985-2.75 greater than 1998,000