Hicks Cable Company has a defined benefit pension plan. Three alternative possibilities for pension-related data at January 1, 2024, are shown below: ($ in thousands) Net loss (gain)—AOCI, January 1$ 324$ (340)2702024 loss (gain) on plan assets(15)(12)62024 loss (gain) on PBO(27)20(275)Accumulated benefit obligation, January 1(2,990)(2,590)(1,490)Projected benefit obligation, January 1(3,350)(2,710)(1,740)Fair value of plan assets, January 12,8402,7401,590Average remaining service period of active employees (years)10118Required:For each independent case, calculate any amortization of the net loss or gain that should be included as a component of pension expense for 2024.For each independent case, determine the net loss—AOCI or net gain—AOCI as of January 1, 2025. For each independent case, calculate any amortization of the net loss or gain that should be included as a component ofpension expense for 2024.Note: Enter your answer in thousands (i.e., 10,000 should be entered as 10).Net gain or lossLess: Corridor amountExcess, if anyService period (years)Amortization of gain or lossCase 1$$$693243241032($ in thousands)Case 2$$$3403401131Case 3$$$270270834 For each independent case, determine the net loss-AOCI or net gain-AOCI as of January 1, 2025.Note: Amounts to be deducted should be indicated by a minus sign. Enter your answer in thousands (i.e., 10,000 should beentered as 10).January 1, 2024 net loss (gain)Loss (gain) on plan assetsAmortizationLoss (gain) on PBOJanuary 1, 2025 net loss or (gain) - AOCICase 1$324324($ in thousands)Case 2$(340)Case 3$ 270(340) $270

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Answered: Hicks Cable Company has a defined…

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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	($ in thousands)
Net loss (gain)—AOCI, January 1	$ 324	$ (340)	270
2024 loss (gain) on plan assets	(15)	(12)	6
2024 loss (gain) on PBO	(27)	20	(275)
Accumulated benefit obligation, January 1	(2,990)	(2,590)	(1,490)
Projected benefit obligation, January 1	(3,350)	(2,710)	(1,740)
Fair value of plan assets, January 1	2,840	2,740	1,590
Average remaining service period of active employees (years)	10	11	8

Required:

For each independent case, calculate any amortization of the net loss or gain that should be included as a component of pension expense for 2024.
For each independent case, determine the net loss—AOCI or net gain—AOCI as of January 1, 2025.

For each independent case, calculate any amortization of the net loss or gain that should be included as a component of
pension expense for 2024.
Note: Enter your answer in thousands (i.e., 10,000 should be entered as 10).
Net gain or loss
Less: Corridor amount
Excess, if any
Service period (years)
Amortization of gain or loss
Case 1
$
$
$
69
324
324
10
32
($ in thousands)
Case 2
$
$
$
340
340
11
31
Case 3
$
$
$
270
270
8
34

For each independent case, determine the net loss-AOCI or net gain-AOCI as of January 1, 2025.
Note: Amounts to be deducted should be indicated by a minus sign. Enter your answer in thousands (i.e., 10,000 should be
entered as 10).
January 1, 2024 net loss (gain)
Loss (gain) on plan assets
Amortization
Loss (gain) on PBO
January 1, 2025 net loss or (gain) - AOCI
Case 1
$
324
324
($ in thousands)
Case 2
$
(340)
Case 3
$ 270
(340) $
270

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