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

Introduction Earnings, liabilities, returns, and deficits which have not yet been recognized were…

Answered: Bostonian Company provided the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Bostonian Company provided the following information related to its defined benefit pension plan for 20X1:


PBO on 1/1	$	2,500,000
Fair value of plan assets on 1/1		2,000,000
Service cost		120,000
Actual return on plan assets		320,000
Payments made to retirees on 12/31		100,000
Amortization of prior service cost		40,000
Recognized actuarial losses		50,000
Contributions made to plan at 12/31		80,000
Interest rate for discounting pension obligations		6	%
Expected return on plan assets		8	%

Required:

What amount was recognized in OCI in 20X1? Be sure to indicate whether OCI amount represented a loss or a (gain).

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Bostonian Company provided the following information related to its defined benefit pension plan for 20X1:


PBO on 1/1	$	2,500,000
Fair value of plan assets on 1/1		2,000,000
Service cost		120,000
Actual return on plan assets		320,000
Payments made to retirees on 12/31		100,000
Amortization of prior service cost		40,000
Recognized actuarial losses		50,000
Contributions made to plan at 12/31		80,000
Interest rate for discounting pension obligations		6	%
Expected return on plan assets		8	%

What amount of pension expense should Bostonian report for 20X1?
What is the fair value of plan assets at December 31, 20X1?
What amount was recognized in OCI in 20X1? Be sure to indicate whether OCI amount represented a loss or a (gain).

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