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 $280,000. The expected rate of return on assets was 8%, and the average remaining service life of the active employee group is 20 years in the current year as well as the previous two years. Required: Fill in the missing amounts. (Enter your answers in thousands rounded to 1 decimal place.) Prior Net Pension ($ in thousands) PBO Plan Assets Balance, Jan. 1, 2021 $ (840.0) $ 580.0 Service Cost-AOCI $ 266.0 $ Net Loss - AOCI Pension Expense (Liability) Cash /Asset 84.0 $ (260.0)
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 $280,000. The expected rate of return on assets was 8%, and the average remaining service life of the active employee group is 20 years in the current year as well as the previous two years. Required: Fill in the missing amounts. (Enter your answers in thousands rounded to 1 decimal place.) Prior Net Pension ($ in thousands) PBO Plan Assets Balance, Jan. 1, 2021 $ (840.0) $ 580.0 Service Cost-AOCI $ 266.0 $ Net Loss - AOCI Pension Expense (Liability) Cash /Asset 84.0 $ (260.0)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 $280,000. The expected rate of return on assets was 8%, and the average remaining service life of the
active employee group is 20 years in the current year as well as the previous two years.
Required:
Fill in the missing amounts. (Enter your answers in thousands rounded to 1 decimal place.)
Prior
($ in thousands)
PBO
Plan
Assets
Service
Cost - AOCI
Net Loss Pension
- AOCI Expense
Cash
Balance, Jan. 1, 2021
$ (840.0)
$
580.0 $
266.0
$
84.0
Service cost
104.0
(42.0)
Interest cost, 5%
Expected return on assets
Adjust for:
Loss on assets
Amortization:
Prior service cost
Amortization:
Net loss
Gain on PBO
Prior service cost
Cash funding
Retiree benefits
Balance, Dec. 31, 2021
$ (908.0)
$
252.0
16.0
(46.4)
(88.0)
Net Pension
(Liability)
/Asset
$ (260.0)
28.0
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