Question

A partially completed pension spreadsheet showing the relationships among the elements that comprise the defined benefit pension plan of Universal Products is given below. The actuary's discount rate is 5%. At the end of 2019, the pension formula was amended, creating a prior service cost of $280,000. The expected rate of return on assets was 8%, and the average remaining service life of the active employee group is 20 years in the current year as well as the previous two years. Required: Fill in the missing amounts. (Enter your answers in thousands rounded to 1 decimal place.)

			Prior				Net Pension
		Plan	Service	Net Loss	Pension		(Liability)
($ in thousands)	PBO	Assets	Cost – AOCI	– AOCI	Expense	Cash	/ Asset
Balance, Jan. 1, 2021	$(840.0)	$580.0	$266.0	$84.0			$(260.0)
Service cost					104.0
Interest cost, 5%	(42.0)
Expected return on assets					(46.4)
Adjust for:
Loss on assets				16.0
Amortization:
Prior service cost
Amortization:
Net loss
Gain on PBO							28.0
Prior service cost
Cash funding						(88.0)
Retiree benefits
Balance, Dec. 31, 2021	$(908.0)	$580.0	$252.0	$100.0	$57.6		$(232.0)

Answer 1