Question

USE THE FOLLOWING INFORMATION FOR # 11-20 Interest (Cost) Rate Expected rate of return on plan assets Actual rate of return on plan assets Beginning of year balance in CASH 3% 3% 4% 120,000 $ e beginning of 2017 Projected benefit obligation at the beginning of 2017 Service cost, 2017 Interest Cost Loss (gain) on PBO for assumption changes Less: Benefits paid to retirees during the year $ $ 350,000 40,000 $ $ 3.500 (45,000) Projected benefit obligation at the end of 2017 250,000 Plan assets at the beginning of the year Actual return on plan assets Cash contributions to the pension plan in 2017 Less: Benefits paid to retirees during the year 44,000 Plan assets at the end of 2017 Additional information reported from the actuary and plan trustee: Prior Service Costs incurred beginning of 2016 40,000 Beginning of year balance in AOCI for Net Loss $ 43,750 Average remaining service years of employees 4 years Beginning of year balance in AOCI for PSC 30,000 Amortization of PSC Amortization of net loss Expected return on plan assets

Answer 1

Answere 1. loss impact on on assumption changes has chat regular net in come. A loss on assumption changes has no imact as the impact goes to oci. There is no impact. on regular net icome.

projected benefit obligation of the begning of 2014 _-350000 interest rate - 34. 10500 so, Answer = 10500