Hicks Cable Company has a defined benefit pension plan. Three alternative possibilities for pension-related data at January 1, 2021, are shown below: ($ in thousands) Case 1 Case 2 $ (341) (14) 22 Case 3 Net loss (gain)-AOCI, Jan. 1 2021 loss (gain) on plan assets 2021 loss (gain) on PBO Accumulated benefit obligation, Jan. 1 Projected benefit obligation, Jan. 1 Fair value of plan assets, Jan. 1 Average remaining service period of active employees (years) 326 (17) (29) (3,010) (3,370) 2,860 266 6 (2,610) (2,730) 2,760 (278) (1,510) (1,760) 1,610 11 13 Required: 1. For each independent case, calculate any amortization of the net loss or gain that should be included as a component of pension expense for 2021. 2. For each independent case, determine the net loss-AOCI or net gain-AOCI as of January 1, 2022.
Hicks Cable Company has a defined benefit pension plan. Three alternative possibilities for pension-related data at January 1, 2021, are shown below: ($ in thousands) Case 1 Case 2 $ (341) (14) 22 Case 3 Net loss (gain)-AOCI, Jan. 1 2021 loss (gain) on plan assets 2021 loss (gain) on PBO Accumulated benefit obligation, Jan. 1 Projected benefit obligation, Jan. 1 Fair value of plan assets, Jan. 1 Average remaining service period of active employees (years) 326 (17) (29) (3,010) (3,370) 2,860 266 6 (2,610) (2,730) 2,760 (278) (1,510) (1,760) 1,610 11 13 Required: 1. For each independent case, calculate any amortization of the net loss or gain that should be included as a component of pension expense for 2021. 2. For each independent case, determine the net loss-AOCI or net gain-AOCI as of January 1, 2022.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 4E
Related questions
Question
Part 1 and part 2 of this question please
![Hicks Cable Company has a defined benefit pension plan. Three alternative possibilities for pension-related data at January 1, 2021,
are shown below:
($ in thousands)
Case 1
Case 2
Case 3
Net loss (gain)-AOCI, Jan. 1
2021 loss (gain) on plan assets
2021 loss (gain) on PBO
Accumulated benefit obligation, Jan. 1
Projected benefit obligation, Jan. 1
Fair value of plan assets, Jan. 1
$
326
2$
(341)
2$
266
(17)
(29)
(3,010)
(3,370)
2,860
(14)
(278)
(1,510)
(1,760)
1,610
22
(2,610)
(2,730)
2,760
Average remaining service period
of active employees (years)
11
13
9.
Required:
1. For each independent case, calculate any amortization of the net loss or gain that should be included as a component of pension
expense for 2021.
2. For each independent case, determine the net loss-AOCI or net gain-AOCI as of January 1, 2022.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
For each independent case, determine the net loss-AOCI or net gain-AOCI as of January 1, 2022. (Amounts to be deducted
and loss amounts should be indicated by a minus sign.)
($ in thousands)
Case 1
Case 2
Case 3
January 1, 2021 net loss (gain)
2$
326
$
(341)
2$
266
Loss (gain) on plan assets
Amortization
Loss (gain) on PBO
January 1, 2022 net loss or (gain) - AOCI
2$
326
2$
(341)
$
266](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F724eb754-2b50-41ef-baeb-d9687acf2531%2F11aef846-0d9e-476d-98c1-4f3e2f7581d7%2Fr6r4fk5_processed.png&w=3840&q=75)
Transcribed Image Text:Hicks Cable Company has a defined benefit pension plan. Three alternative possibilities for pension-related data at January 1, 2021,
are shown below:
($ in thousands)
Case 1
Case 2
Case 3
Net loss (gain)-AOCI, Jan. 1
2021 loss (gain) on plan assets
2021 loss (gain) on PBO
Accumulated benefit obligation, Jan. 1
Projected benefit obligation, Jan. 1
Fair value of plan assets, Jan. 1
$
326
2$
(341)
2$
266
(17)
(29)
(3,010)
(3,370)
2,860
(14)
(278)
(1,510)
(1,760)
1,610
22
(2,610)
(2,730)
2,760
Average remaining service period
of active employees (years)
11
13
9.
Required:
1. For each independent case, calculate any amortization of the net loss or gain that should be included as a component of pension
expense for 2021.
2. For each independent case, determine the net loss-AOCI or net gain-AOCI as of January 1, 2022.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
For each independent case, determine the net loss-AOCI or net gain-AOCI as of January 1, 2022. (Amounts to be deducted
and loss amounts should be indicated by a minus sign.)
($ in thousands)
Case 1
Case 2
Case 3
January 1, 2021 net loss (gain)
2$
326
$
(341)
2$
266
Loss (gain) on plan assets
Amortization
Loss (gain) on PBO
January 1, 2022 net loss or (gain) - AOCI
2$
326
2$
(341)
$
266
![Hicks Cable Company has a defined benefit pension plan. Three alternative possibilities for pension-related data at January 1, 2021,
are shown below:
($ in thousands)
Case 1
Case 2
Case 3
Net loss (gain)-AOCI, Jan. 1
2021 loss (gain) on plan assets
2021 loss (gain) on PBO
Accumulated benefit obligation, Jan. 1
Projected benefit obligation, Jan. 1
Fair value of plan assets, Jan. 1
$
326
2$
(341)
2$
266
(17)
(29)
(3,010)
(3,370)
2,860
(14)
(278)
(1,510)
(1,760)
1,610
22
(2,610)
(2,730)
2,760
Average remaining service period
of active employees (years)
11
13
9.
Required:
1. For each independent case, calculate any amortization of the net loss or gain that should be included as a component of pension
expense for 2021.
2. For each independent case, determine the net loss-AOCI or net gain-AOCI as of January 1, 2022.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
For each independent case, calculate any amortization of the net loss or gain that should be included as a component of
pension expense for 2021. (Input all amounts as positive values.)
($ in thousands)
Case 1
Case 2
Case 3
Net gain or loss
$
326
$
341
$
266
Less: Corridor amount
Excess, if any
$
326
2$
341
2$
266
Service period (years)
11
13
Amortization of gain or loss
$
30
$
26
$
30](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F724eb754-2b50-41ef-baeb-d9687acf2531%2F11aef846-0d9e-476d-98c1-4f3e2f7581d7%2Fme3i7ps_processed.png&w=3840&q=75)
Transcribed Image Text:Hicks Cable Company has a defined benefit pension plan. Three alternative possibilities for pension-related data at January 1, 2021,
are shown below:
($ in thousands)
Case 1
Case 2
Case 3
Net loss (gain)-AOCI, Jan. 1
2021 loss (gain) on plan assets
2021 loss (gain) on PBO
Accumulated benefit obligation, Jan. 1
Projected benefit obligation, Jan. 1
Fair value of plan assets, Jan. 1
$
326
2$
(341)
2$
266
(17)
(29)
(3,010)
(3,370)
2,860
(14)
(278)
(1,510)
(1,760)
1,610
22
(2,610)
(2,730)
2,760
Average remaining service period
of active employees (years)
11
13
9.
Required:
1. For each independent case, calculate any amortization of the net loss or gain that should be included as a component of pension
expense for 2021.
2. For each independent case, determine the net loss-AOCI or net gain-AOCI as of January 1, 2022.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
For each independent case, calculate any amortization of the net loss or gain that should be included as a component of
pension expense for 2021. (Input all amounts as positive values.)
($ in thousands)
Case 1
Case 2
Case 3
Net gain or loss
$
326
$
341
$
266
Less: Corridor amount
Excess, if any
$
326
2$
341
2$
266
Service period (years)
11
13
Amortization of gain or loss
$
30
$
26
$
30
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning