Question

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 regarding the PBO at the end of the year, resulting in a $25,000 decrease in the estimate of that obligation. Required: 1. Calculate any amortization of the net gain that should be included as a component of net pension expense for 2018. 2. Assume the net pension expense for 2018, not including the amortization of the net gain component, is $327,000. What is pension expense for the year? 3. Determine the net loss-AOCI or net gain—AOCI as of January 1, 2019. thousand This is a numeric cell, so please Amount amortized to 2018 pension| enter numbers only. Pension expense Net gain -AOCI, end of 2018 (beg. of 2019) thousand thousand

Answer 1

solution OComfutation ag Anttation o ret gain PoorHicolans AmooNt ($) et Sain- ApCI at 1-1-2018 100 18,00,00 1,80.000 19,00.000 i5 greak thas 13,00,000J EAcess at the beginning 0f tho 60.000 Auerago Yemaininy Scuice 1aLar feriod Pmodnt Pmao red to ao fensio enfenses 16 $5,000 Rensiom etfense 3,a1poo-s.00 3,aa.000

Determiration ap net doss-AOCI (o1) net gain -AOCI Canticulins AMount Q.uoooo Net Gain-AOCI ot 1-1-2012 Less LOss on an et 13.00,000 x C10%-P%) (S.000) ao1 AOCT Ptnoi 2ation S.000 add ao1? Gain on PBo pet Gain'- AOCT enda 201? २,३५,०00 CBeginira of ao9