Hicks Cable Company has a defined benefit pension plan. Three alternative possibilities for pension-related data at January 1, 2024, are shown below. Case 1 ($ in thousands) Case 2 Case 3 Net loss (gain)-AOCI, January 1 $ 321 2024 loss (gain) on plan assets (12) $ (335) (9) 259 3 2024 loss (gain) on PBO (24) 17 Accumulated benefit obligation, January 1 (2,960) Projected benefit obligation, January 1 (3,320) Fair value of plan assets, January 1 2,810 (2,560) (2,680) 2,710 (266) (1,460) (1,710) 1,560 Average remaining service period of active employees (years) 13 16 11 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. Case 1 ($ in thousands) Case 2 Case 3 Net loss (gain)-AOCI, January 1 $ 321 2024 loss (gain) on plan assets (12) $ (335) (9) 259 3 2024 loss (gain) on PBO (24) 17 Accumulated benefit obligation, January 1 (2,960) Projected benefit obligation, January 1 (3,320) Fair value of plan assets, January 1 2,810 (2,560) (2,680) 2,710 (266) (1,460) (1,710) 1,560 Average remaining service period of active employees (years) 13 16 11 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
Related questions
Question
None
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:
($ in thousands)
Case 1
Case 2
Case 3
Net loss (gain)-AOCI, January 1
$ 321
$ (335)
259
2024 loss (gain) on plan assets
(12)
(9)
3
2024 loss (gain) on PBO
(24)
17
Accumulated benefit obligation, January 1
(2,960)
Projected benefit obligation, January 1
(3,320)
Fair value of plan assets, January 1
2,810
(2,560)
(2,680)
2,710
(266)
(1,460)
(1,710)
1,560
Average remaining service period of active employees
(years)
13
16
11
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 (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
($ in thousands)
Case 1
Case 2
Case 3
$
321
$
335
$
259
$
321
$
335
$
259
<Required 1
0
0
Required 2 >
0
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 2 images
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
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education