Question

Hicks Cable Company has a defined benefit pension plan. Three alternative possibilities for pension-related data at...

Hicks Cable Company has a defined benefit pension plan. Three alternative possibilities for pension-related data at January 1, 2021, are shown below:

($ in thousands)
Case 1 Case 2 Case 3
Net loss (gain)—AOCI, Jan. 1 $ 320 $ (330 ) $ 260
2021 loss (gain) on plan assets (11 ) (8 ) 2
2021 loss (gain) on PBO (23 ) 16 (265 )
Accumulated benefit obligation, Jan. 1 (2,950 ) (2,550 ) (1,450 )
Projected benefit obligation, Jan. 1 (3,310 ) (2,670 ) (1,700 )
Fair value of plan assets, Jan. 1 2,800 2,700 1,550
Average remaining service period
of active employees (years)
12 15 10

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 2021.
2. For each independent case, determine the net loss—AOCI or net gain—AOCI as of January 1, 2022..

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