Information for the Sheridan Company pension plan in 2026 is as follows: . . . Service cost is $72000 Settlement rate is 10%, expected rate of return is 10% Actual return on plan assets is $220000 There are no prior service costs to amortize Annual funding contribution is $97000 Benefits paid to retirees during the year are $84000 Average service life of all covered employees is 15 years The projected benefit obligation on January 1, 2026 was $1170000 The value of plan assets on January 1, 2026 was $970000 The balance in Other Comprehensive Income-Gains/Losses is a $205000 credit on December 31, 2025. What is the amount of amortization of the other comprehensive income gain or loss in 2026? O $9700 $3300 $117000 O $5867
Information for the Sheridan Company pension plan in 2026 is as follows: . . . Service cost is $72000 Settlement rate is 10%, expected rate of return is 10% Actual return on plan assets is $220000 There are no prior service costs to amortize Annual funding contribution is $97000 Benefits paid to retirees during the year are $84000 Average service life of all covered employees is 15 years The projected benefit obligation on January 1, 2026 was $1170000 The value of plan assets on January 1, 2026 was $970000 The balance in Other Comprehensive Income-Gains/Losses is a $205000 credit on December 31, 2025. What is the amount of amortization of the other comprehensive income gain or loss in 2026? O $9700 $3300 $117000 O $5867
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Information for the Sheridan Company pension plan in 2026 is as follows:
.
.
Service cost is $72000
Settlement rate is 10%, expected rate of return is 10%
Actual return on plan assets is $220000
There are no prior service costs to amortize
Annual funding contribution is $97000
Benefits paid to retirees during the year are $84000
Average service life of all covered employees is 15 years
The projected benefit obligation on January 1, 2026 was $1170000
The value of plan assets on January 1, 2026 was $970000
The balance in Other Comprehensive Income-Gains/Losses is a $205000 credit on December 31, 2025.
What is the amount of amortization of the other comprehensive income gain or loss in 2026?
O $9700
$3300
$117000
O $5867
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