2014 should be 2017 Pearl Company sponsors a defined benefit pension plan for it

Question

2014 should be 2017

Pearl Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2017 in which no benefits were paid. 1. The actuarial present value of future benefits earned by employees for 2. The company's funding policy requires a contribution to the pension trustee 3. As of January 1, 2017, the company had a projected benefit obligation of services rendered in 2017 amounted to $55,800. amounting to $144,681 for 2017. $900,900, an accumulated benefit obligation of $795,300, and a debit balance of $397,300 in accumulated OCI (PSC). The fair value of pension plan assets amounted to $599,900 at the beginning of the year. The actual and expected return on plan assets was $54,000. The settlement rate was 9%. No gains or losses occurred in 2017 and no benefits were paid. 4. Amortization of prior service cost was $49,700 in 2017. Amortization of net gain or loss was not required in 2017. Determine the amounts of the components of pension expense that should be recognized by the company in 2017. (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g.-45 or parenthesis e.g. (45).) Components of Pension Expense

Explanation / Answer

Part A

Components of pension expense

Part B

Part c

Pension liability= (900900+55800+81081)-(599900+144681+54000)=239200

Other comprehensive income = 397300-49700= 347600

Service cost 55800 Interest on projected benefit obligation (900900*9%) 81081 Amortization of prior cost 49700 Expected return on plan assets -54000 Total pension expense 132581

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