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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.

FINANCIAL ACCOUNTING
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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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
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
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