Hicks Cable Company has a defined benefit pension plan. Three alternative possib

Question

Hicks Cable Company has a defined benefit pension plan. Three alternative possibilities for pension-related data at January 1, 2018, are shown below: ($ in 000's Case 2 Case 1 Case 3 $337(407) $ 297 Net loss (gain)-AOCI, Jan. 1 2018 loss (gain) on plan assets 2018 loss (gain) on PBO Accumulated benefit obligation, Jan. 1 Projected benefit obligation, Jan. 1 Fair value of plan assets, Jan. 1 Average remaining service period of active employees (years) (25) (28) (40) (301) (3,120) (2,720 (1,620) 1,720 10 (3,480) (2,840) (1,870) 2,870 2,970 12 15 Required: 1. For each independent case, calculate any amortization of the net loss or gain that should be included as a component of pension expense for 2018 2. For each independent case, determine the net loss-AOC or net gain-AOCI as of January 1, 2019 Complete this question by entering your answers in the tabs below. Required 1Required 2 For each independent case, calculate any amortization of the net loss or gain that should be included as a component of pension expense for 2018. (Input all amounts as positive values.) ($ in 000's) Case 2 Case 1 Case 3 337 $ 407S 297 Net gain or loss Less: Corridor amount 337$ 407S 297 Excess, if any Service period (years) Amortization of gain or loss Required Required 2>

Explanation / Answer

Required - 1

*10% times either the PBO or plan assets (beginning of the year), whichever is larger

Required - 2

Case 1 Case 2 Case 3 Net gain or loss 337 407 297 Less: Corridor amount 348 287 187 Excess, if any 0 120 110 Service period 12 15 10 Amortization of gain or loss $0 $8 $11

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