Hall of Fame Co. has a defined benefit pension plan. Two alternative possibiliti

Question

Hall of Fame Co. has a defined benefit pension plan. Two alternative possibilities for pension-related data for the current calendar year are shown below:

  Average remaining service period of active employees (years)

For each independent case, calculate amortization of the net loss or gain that should be included as a component of pension expense for the current year. (Input all amounts as positive values.)

Determine the net loss or gain as of December 31 of the current year. (Amounts to be deducted and loss amounts should be indicated by a minus sign.)

Hall of Fame Co. has a defined benefit pension plan. Two alternative possibilities for pension-related data for the current calendar year are shown below:

Explanation / Answer

1) Case 1 case 2 Net Loss or gain 236600 216000 less: 10% corrdor 203000 163000 Excess 33600 53000 Service period 12 10 Amortization 2800 5300 Calculations 2030000*10% 1630000*10% 2) Case 1 case 2 Balance, january 1 -236600 216000 loss ( gain) on plan assets -6300 2300 Amortization 2800 -5300 loss ( gain) on PBO 12300 -223000 Net Loss ( gain) ,12/31 -227800 -10000

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