Hicks Cable Company has a defined benefit pension plan. Three alternative possibilities for pension-related data at January 1, 2024, are shown below: Net loss (gain)-AOCI, January 1 2024 loss (gain) on plan assets 2024 loss (gain) on PBO Accumulated benefit obligation, January 1 Projected benefit obligation, January 1 Fair value of plan assets, January 11 Average remaining service period of active employees (years) (5 in thousands) Case 2 $ (410) Case 1 $ 340 (31) (43) (3,150) (3,510) 3,000 10 (28) 36 (2,750) (2,870) 2,900 12 Case 3 281 (290) (1,650) (1,900) 1,750 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 2024. 2. For each independent case, determine the net loss-AOCI or net gain-AOCI as of January 1, 2025.
Hicks Cable Company has a defined benefit pension plan. Three alternative possibilities for pension-related data at January 1, 2024, are shown below: Net loss (gain)-AOCI, January 1 2024 loss (gain) on plan assets 2024 loss (gain) on PBO Accumulated benefit obligation, January 1 Projected benefit obligation, January 1 Fair value of plan assets, January 11 Average remaining service period of active employees (years) (5 in thousands) Case 2 $ (410) Case 1 $ 340 (31) (43) (3,150) (3,510) 3,000 10 (28) 36 (2,750) (2,870) 2,900 12 Case 3 281 (290) (1,650) (1,900) 1,750 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 2024. 2. For each independent case, determine the net loss-AOCI or net gain-AOCI as of January 1, 2025.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Hicks Cable Company has a defined benefit pension plan. Three alternative possibilities for pension-related data at January 1, 2024,
are shown below:
Net loss (gain)-AOCI, January 1
2024 loss (gain) on plan assets
2024 loss (gain) on PBO
Accumulated benefit obligation, January 11
Projected benefit obligation, January 1
Fair value of plan assets, January 1
Average remaining service period of active
employees (years)
Net gain or loss
Less: Corridor amount
Excess, if any
Service period (years)
Amortization of gain or loss
Case 1
340
340
($ in thousands)
Case 2
$ (410)
(28)
36
Case 1
0
$ 340
(31)
(43)
(3,150)
(3,510)
3,000
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 2024.
2. For each independent case, determine the net loss-AOCI or net gain-AOCI as of January 1, 2025.
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 2024.
Note: Enter your answer in thousands (1.e., 10,000 should be entered as 10).
$
10
(5 in thousands)
Case 2
$
410
(2,750)
(2,878)
2,900
410
0
12
Case 3
$
$
Required 2 >
281
Case 3
281
6
281
(290)
(1,650)
(1,900)
1,750
0
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