Herring Wholesale Company has a defined benefit pension plan. On January 1, 2021, the following pension-related data were available: ($ in thousands) Net gain-AOCI $ 170 Accumulated benefit obligation Projected benefit obligation 1,170 1,400 Fair value of plan assets 1,100 Average remaining service period of active employees (expected to remain constant for the next several years) 15 years The rate of return on plan assets during 2021 was 9%, although it was expected to be 10%. The actuary revised assumptions regarding the PBO at the end of the year, resulting in a $23,000 decrease in the estimate of that obligation. Required:

Herring Wholesale Company has a defined benefit pension plan. On January 1, 2021, the following pension-related data were available: ($ in thousands) Net gain-AOCI $ 170 Accumulated benefit obligation Projected benefit obligation 1,170 1,400 Fair value of plan assets 1,100 Average remaining service period of active employees (expected to remain constant for the next several years) 15 years The rate of return on plan assets during 2021 was 9%, although it was expected to be 10%. The actuary revised assumptions regarding the PBO at the end of the year, resulting in a $23,000 decrease in the estimate of that obligation. Required:

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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