Bostonian Company provided the following information related to its defined benefit pension plan for 20X1: PBO on 1/1 Fair value of plan assets on 1/1 Service cost Actual return on plan assets Payments made to retirees on 12/31 Amortization of prior service cost Recognized actuarial losses. Contributions made to plan at 12/31 Interest rate for discounting pension obligations Expected return on plan assets 1. 2. 3. Pension expense Fair value of plan assets OCI Required: 1. What amount of pension expense should Bostonian report for 20X1? 2. What is the fair value of plan assets at December 31, 20X1? 3. What amount was recognized in OCI in 20X1? Be sure to indicate whether OCI amount represented a loss or a (gain). Amount $ 200,000 $ 2,300,000 $2,500,000 2,000,000 Gain 120,000 320,000 100,000 40,000 50,000 80,000 6% 8%

Bostonian Company provided the following information related to its defined benefit pension plan for 20X1: PBO on 1/1 Fair value of plan assets on 1/1 Service cost Actual return on plan assets Payments made to retirees on 12/31 Amortization of prior service cost Recognized actuarial losses. Contributions made to plan at 12/31 Interest rate for discounting pension obligations Expected return on plan assets 1. 2. 3. Pension expense Fair value of plan assets OCI Required: 1. What amount of pension expense should Bostonian report for 20X1? 2. What is the fair value of plan assets at December 31, 20X1? 3. What amount was recognized in OCI in 20X1? Be sure to indicate whether OCI amount represented a loss or a (gain). Amount $ 200,000 $ 2,300,000 $2,500,000 2,000,000 Gain 120,000 320,000 100,000 40,000 50,000 80,000 6% 8%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Employee Benefits

In an organization employees are the most important resource and most important asset. They can lead an organization to the sky or can be the reason for unsuccessful of business. Therefore, it is very much important that employees of an organization should be satisfied by the environment of the organization and most importantly with the salary, wages incentives, etc.

Question

Please avoid solutions image based thnx

Bostonian Company provided the following information related to its defined benefit pension plan for 20X1:
PBO on 1/1
Fair value of plan assets on 1/1
Service cost
Actual return on plan assets
Payments made to retirees on 12/31
Amortization of prior service cost
Recognized actuarial losses.
Contributions made to plan at 12/31
Interest rate for discounting pension obligations
Expected return on plan assets
1.
2.
3.
Pension expense
Fair value of plan assets
OCI
Required:
1. What amount of pension expense should Bostonian report for 20X1?
2. What is the fair value of plan assets at December 31, 20X1?
3. What amount was recognized in OCI in 20X1? Be sure to indicate whether OCI amount represented a loss or a (gain).
Amount
$
200,000
$ 2,300,000
$2,500,000
2,000,000
Gain
120,000
320,000
100,000
40,000
50,000
80,000
6%
8%

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