Herring Wholesale Company has a defined benefit pension plan. On January 1, 2024, the following pension related data were available: Net gain-AOCI Accumulated benefit obligation Projected benefit obligation Fair value of plan assets Average remaining service period of active employees (expected to remain constant for the next several years) ($ in thousands) $ 250 2,170 2,200 1,700 15 years The rate of return on plan assets during 2024 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 $33,000 decrease in the estimate of that obligation. Required: 1. Calculate any amortization of the net gain that should be included as a component of net pension expense for 2024. 2. Assume the net pension expense for 2024, not including the amortization of the net gain component, is $335,000. What is pension expense for the year? 3. Determine the net loss-AOCI or net gain-AOCI as of January 1, 2025. Note: For all requirements, enter your answers in thousands (i.e. 200,000 should be entered as 200). 1. Amount amortized to 2024 pension expense 2. Pension expense 3. -AOCI, end of 2024 (beginning of 2025) ($ in thousands)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Herring Wholesale Company has a defined benefit pension plan. On January 1, 2024, the following pension related data were
available:
Net gain-AOCI
Accumulated benefit obligation
Projected benefit obligation
Fair value of plan assets
($ in thousands)
$ 250
2,170
2,200
Average remaining service period of active employees (expected to
remain constant for the next several years)
1,700
15 years
The rate of return on plan assets during 2024 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 $33,000 decrease in the estimate of that obligation.
Required:
1. Calculate any amortization of the net gain that should be included as a component of net pension expense for 2024.
2. Assume the net pension expense for 2024, not including the amortization of the net gain component, is $335,000. What is pension
expense for the year?
3. Determine the net loss-AOCI or net gain-AOCI as of January 1, 2025.
Note: For all requirements, enter your answers in thousands (i.e. 200,000 should be entered as 200).
1. Amount amortized to 2024 pension expense
2. Pension expense
3.
-AOCI, end of 2024 (beginning of 2025)
($ in thousands)
Transcribed Image Text:Herring Wholesale Company has a defined benefit pension plan. On January 1, 2024, the following pension related data were available: Net gain-AOCI Accumulated benefit obligation Projected benefit obligation Fair value of plan assets ($ in thousands) $ 250 2,170 2,200 Average remaining service period of active employees (expected to remain constant for the next several years) 1,700 15 years The rate of return on plan assets during 2024 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 $33,000 decrease in the estimate of that obligation. Required: 1. Calculate any amortization of the net gain that should be included as a component of net pension expense for 2024. 2. Assume the net pension expense for 2024, not including the amortization of the net gain component, is $335,000. What is pension expense for the year? 3. Determine the net loss-AOCI or net gain-AOCI as of January 1, 2025. Note: For all requirements, enter your answers in thousands (i.e. 200,000 should be entered as 200). 1. Amount amortized to 2024 pension expense 2. Pension expense 3. -AOCI, end of 2024 (beginning of 2025) ($ in thousands)
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