Exercise 20-9 Taveras Enterprises provides the following information relative to
ID: 340703 • Letter: E
Question
Exercise 20-9 Taveras Enterprises provides the following information relative to its defined benefit pension plan. Balances or Values at December 31, 2017 Projected benefit obligation Accumulated benefit obligation Fair value of plan assets Accumulated OCI (PSC) Accumulated OCI-Net loss (1/1/17 balance, 0) Pension liability Other pension plan data for 2017 $2,737,000 1,980,000 2,278,329 210,000 45,680 458,671 Service cost Prior service cost amortization Actual return on plan assets Expected return on plan assets Interest on January 1, 2017, projected benefit obligation Contributions to plan Benefits paid $94,000 42,000 130,000 175,680 253,000 93,329 140,000Explanation / Answer
a) Note to financial statements disclosing components of 2017 pension expense
Net pension expense for 2017 is composed of the following components of pension cost:-
b) Comprehensive Income, 2017 (Amount in $)
Comprehensive Income, 2017 (Amount in $)
c) Accumulated other comprehensive income reported at Dec. 31, 2017
Accumulated Other comprehensive income (loss) ($45,680)
Service cost $94,000 Add: Interest cost $253,000 Less: Expected return on plan assets ($175,680) Add: Prior service cost amortization $42,000 Pension expense $213,320Related Questions
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