Hicks Cable Company has a defined benefit pension plan. Three alternative possib
ID: 2557382 • Letter: H
Question
Hicks Cable Company has a defined benefit pension plan. Three alternative possibilities for pension-related data at January 1, 2018, are shown below Bet 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) $ 327 $(357) 276 (18) (30) (15) 23 (292) (3,020)(2,620) (1,520) (3,380) (2.740) (1,770) 2,870 2,770620 13 16 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-AOCI or net gain-AOCI as of January 1, 2019. Complete this question by entering your answers in the tabs below Required 1 Required 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.) (S in 000's) Case 2 Case 1 Case 3 Not gain or loss I ess Coamdor $327357276Explanation / Answer
Answer 1. ($ in 000) Case 1 Case 2 Case 3 Net Loss or Gain 327 357 276 Less: 10% Corridor (threshold)** (338) 277 177 Excess None 80 99 Service Period 13 16 11 Amortization none 5 9 **10% times either the PBO or Plan Assets (Beginning of the year), whichever is larger Case 1 - $3,380 or $2,870: choose $3,380 Case 2 - $2,740 or $2,770: choose $2,770 Case 3 - $1,770 or $1,620: choose $1,770 Answer 2. Case 1 Case 2 Case 3 Jan 1, 2018 Net Loss or (gain) 327 (357) 276 2018 Loss (gain) on Plan assets (18) (15) 5 2018 Amortization - 5 (9) 2018 Loss (gain) on PBO (30) 23 (292) Jan 1, 2019 279 344 20
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