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..
ANSWER
================
DEAR STUDENT,
IF YOU HAVE ANY QUERY PLEASE ASK ME IN THE COMMENT BOX,I AM HERE TO HELP YOU.PLEASE GIVE ME POSITIVE RATING..
****************THANK YOU****************
Get Answers For Free
Most questions answered within 1 hours.