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Accumulated benefit obligation Projected benefit obligation Plan assets (at fair value) AOCL - net loss Settlement rate (for year) Expected rate of return (for year) The following data are for the pension plan for the employees of Lockett Company. 1/1/20 $4,000,000 12/31/20 $4,200,000 12/31/21 $5,800,000 4,300,000 4,100,000 5,400,000 4,600,000 4,900,000 5,600,000 -0- 960,400 1,000,000 9% 8% 6% 7% Lockett's contribution was $840,000 in 2021 and benefits paid were $750,000. Lockett estimates that the average remaining service life is 12 years. Required: 1. Compute the amount of AOCI-net loss amortized in 2021. 2. Prepare the worksheet entry to record the amortization.

Accumulated benefit obligation Projected benefit obligation Plan assets (at fair value) AOCL - net loss Settlement rate (for year) Expected rate of return (for year) The following data are for the pension plan for the employees of Lockett Company. 1/1/20 $4,000,000 12/31/20 $4,200,000 12/31/21 $5,800,000 4,300,000 4,100,000 5,400,000 4,600,000 4,900,000 5,600,000 -0- 960,400 1,000,000 9% 8% 6% 7% Lockett's contribution was $840,000 in 2021 and benefits paid were $750,000. Lockett estimates that the average remaining service life is 12 years. Required: 1. Compute the amount of AOCI-net loss amortized in 2021. 2. Prepare the worksheet entry to record the amortization.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 7RE
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Accumulated benefit obligation Projected benefit obligation Plan assets (at fair value) AOCL - net loss Settlement rate (for year) Expected rate of return (for year) The following data are for the pension plan for the employees of Lockett Company. 1/1/20 $4,000,000 12/31/20 $4,200,000 12/31/21 $5,800,000 4,300,000 4,100,000 5,400,000 4,600,000 4,900,000 5,600,000 -0- 960,400 1,000,000 9% 8% 6% 7% Lockett's contribution was $840,000 in 2021 and benefits paid were $750,000. Lockett estimates that the average remaining service life is 12 years. Required: 1. Compute the amount of AOCI-net loss amortized in 2021. 2. Prepare the worksheet entry to record the amortization.
Transcribed Image Text:Accumulated benefit obligation Projected benefit obligation Plan assets (at fair value) AOCL - net loss Settlement rate (for year) Expected rate of return (for year) The following data are for the pension plan for the employees of Lockett Company. 1/1/20 $4,000,000 12/31/20 $4,200,000 12/31/21 $5,800,000 4,300,000 4,100,000 5,400,000 4,600,000 4,900,000 5,600,000 -0- 960,400 1,000,000 9% 8% 6% 7% Lockett's contribution was $840,000 in 2021 and benefits paid were $750,000. Lockett estimates that the average remaining service life is 12 years. Required: 1. Compute the amount of AOCI-net loss amortized in 2021. 2. Prepare the worksheet entry to record the amortization.
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