Herring Wholesale Company has a defined benefit pension plan. On January 1, 2018, the following...
70.2K
Verified Solution
Link Copied!
Question
Accounting
Herring Wholesale Company has a defined benefit pension plan. On January 1, 2018, the following pension related data were available:
($ in 000s)
Net gainAOCI
$350
Accumulated benefit obligation
2,770
Projected benefit obligation
2,600
Fair value of plan assets
2,300
Average remaining service period of active employees (expected to remain constant for the next several years)
15
years
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 $39,000 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 $341,000. What is pension expense for the year? 3. Determine the net lossAOCI or net gainAOCI as of January 1, 2019
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
