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, 1, 2017 2017 2018 Projected benefit obligation $2,810,000 $3,661,900 $4,202,852 Accumulated benefit obligation 1,880,000 2,413,000 2,901,000 Plan assets (fair value and market-related asset value) 2,898,000 1,690,000 3,799,000 Accumulated net (gain) or loss (for purposes of the corridor calculation) 198,000 (24,000) Discount rate (current settlement rate) 9 % 8% Actual and expected asset return rate 10 % 10% Contributions 1,039,000 611,200 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

- Answer: Given that * whispering Company sponsor a defined benfil Pension Plan for its 600 employee The opening balance is taken for calculation for Projected benefit obligation 2898000 Carrold * which is 2017 is & $700.00 for at for 2018 * for calculation of 10% corridor the amount which even is higher amortization of gain accumulated * There is no minimum amount and loss los corridor amount higher than OCI (GL). accumulated net (gain) or loss for purpose of * The . . Calculations 2017.: year 2017 opening closing batance opening balance closing . balance balance 20000 198000 198006

balance is taken for calculation in the @ The opening schedule The calculate of amount of accumulated ocī CGI) y Plan aset Accumulated 1 10% corridor Year projected benefit obligation 283,000 709000 2,830000 368.070198000 21898.000 13,6801900 2018 minimum amortization of (Gain) loss - 2017 The mimum amortization of gain loss is so Pension expense for 2017 - 398800+(28301606 x 9x)-(17001060X10%) + 134.000 . = 398000 + 2 547001 - 170000 +134000 3 616700 part 2

Pension @ expense for 2018) = 447000 + ( 31680700* 8v.) +-(2898000 x lor.) +134000 =447000+ (29496) - 289800 +134000 E 615 6661