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Cullumber Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2025, the following balances relate to this plan. Plan assets Projected benefit obligation Pension asset/liability Accumulated OCI (PSC) $465,800 604,200 138,400 As a result of the operation of the plan during 2025, the following additional data are provided by the actuary. Service cost Settlement rate, 10% Actual return on plan assets Amortization of prior service cost Expected return on plan assets Benefits paid retirees 95,000 Dr. Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions Contributions $86,600 55,000 19,300 52,000 79,600 102,800 88,300

Cullumber Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2025, the following balances relate to this plan. Plan assets Projected benefit obligation Pension asset/liability Accumulated OCI (PSC) $465,800 604,200 138,400 As a result of the operation of the plan during 2025, the following additional data are provided by the actuary. Service cost Settlement rate, 10% Actual return on plan assets Amortization of prior service cost Expected return on plan assets Benefits paid retirees 95,000 Dr. Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions Contributions $86,600 55,000 19,300 52,000 79,600 102,800 88,300

FINANCIAL ACCOUNTING
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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Cullumber Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2025, the following balances relate to this plan. Plan assets Projected benefit obligation Pension asset/liability Accumulated OCI (PSC) $465,800 604,200 138,400 95,000 Dr. As a result of the operation of the plan during 2025, the following additional data are provided by the actuary. Benefits paid retirees Service cost Settlement rate, 10% Actual return on plan assets Amortization of prior service cost Expected return on plan assets Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions Contributions $86,600 55,000 19,300 52,000 79,600 102,800 88,300
Transcribed Image Text:Cullumber Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2025, the following balances relate to this plan. Plan assets Projected benefit obligation Pension asset/liability Accumulated OCI (PSC) $465,800 604,200 138,400 95,000 Dr. As a result of the operation of the plan during 2025, the following additional data are provided by the actuary. Benefits paid retirees Service cost Settlement rate, 10% Actual return on plan assets Amortization of prior service cost Expected return on plan assets Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions Contributions $86,600 55,000 19,300 52,000 79,600 102,800 88,300
Using the data above, compute pension expense for Cullumber. for the year 2025 by preparing a pension worksheet. (Enter all amounts as positive.) Items Balance, Jan, 1, 2025 Service cost Interest cost Actual return Unexpected gain Amortization of PSC Liability increase Contributions Benefits Journal entry for 2025 Accumulated OCI, Dec 31, 2024 Annual Pension Expense 10000 Y V Cash
Transcribed Image Text:Using the data above, compute pension expense for Cullumber. for the year 2025 by preparing a pension worksheet. (Enter all amounts as positive.) Items Balance, Jan, 1, 2025 Service cost Interest cost Actual return Unexpected gain Amortization of PSC Liability increase Contributions Benefits Journal entry for 2025 Accumulated OCI, Dec 31, 2024 Annual Pension Expense 10000 Y V Cash
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