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Determine the total amount of pension expense to be recognized by Ivanhoe Company in 2025 and 2026. Pension expense for 2025 Pension expense for 2026 $ $

Determine the total amount of pension expense to be recognized by Ivanhoe Company in 2025 and 2026. Pension expense for 2025 Pension expense for 2026 $ $

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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Ivanhoe Company sponsors a defined benefit pension plan for its 600 employees. The company's actuary provided the following information about the plan. Projected benefit obligation Accumulated benefit obligation Plan assets (fair value and market-related asset value) Accumulated net (gain) or loss (for purposes of the corridor calculation) Discount rate (current settlement rate) Actual and expected asset return rate Contributions January 1, 2025 1,720,000 December 31, $2,830,000 $3,686,700 1,910,000 0 2025 2,415,000 2,924,000 200,000 9% 10% 1,032,000 2026 $4,229,636 2,921,000 3,815,000 (25,000) 8% 10% 598,600 The average remaining service life per employee is 10.5 years. The service cost component of net periodic pension expense for employee services rendered amounted to $402,000 in 2025 and $473,000 in 2026. The accumulated OCI (PSC) on January 1, 2025, was $1,417,500. No benefits have been paid.
Transcribed Image Text:Ivanhoe Company sponsors a defined benefit pension plan for its 600 employees. The company's actuary provided the following information about the plan. Projected benefit obligation Accumulated benefit obligation Plan assets (fair value and market-related asset value) Accumulated net (gain) or loss (for purposes of the corridor calculation) Discount rate (current settlement rate) Actual and expected asset return rate Contributions January 1, 2025 1,720,000 December 31, $2,830,000 $3,686,700 1,910,000 0 2025 2,415,000 2,924,000 200,000 9% 10% 1,032,000 2026 $4,229,636 2,921,000 3,815,000 (25,000) 8% 10% 598,600 The average remaining service life per employee is 10.5 years. The service cost component of net periodic pension expense for employee services rendered amounted to $402,000 in 2025 and $473,000 in 2026. The accumulated OCI (PSC) on January 1, 2025, was $1,417,500. No benefits have been paid.
Determine the total amount of pension expense to be recognized by Ivanhoe Company in 2025 and 2026. Pension expense for 2025 Pension expense for 2026 LA $ $
Transcribed Image Text:Determine the total amount of pension expense to be recognized by Ivanhoe Company in 2025 and 2026. Pension expense for 2025 Pension expense for 2026 LA $ $
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