Information for the Wildhorse Company pension plan in 2026 is as follows: ● Service cost is $87000 Settlement rate is 10%, expected rate of return is 10% ● Actual return on plan assets is $370000● There are no prior service costs to amortize ● Annual funding contribution is $112000 Benefits paid to retirees during the year are $92000 Average service life of all covered employees is 15 years. The projected benefit obligation on January 1, 2026 was $1320000 The value of plan assets on January 1, 2026 was $1120000. The balance in Other Comprehensive Income - Gains/Losses is a $355000 credit on December 31, 2025. What is the unexpected gain or loss for 2026? Select answer from the options below $258000 unexpected gain $258000 unexpected loss $40000 unexpected gain $40000 unexpected loss

Information for the Wildhorse Company pension plan in 2026 is as follows: ● Service cost is $87000 Settlement rate is 10%, expected rate of return is 10% ● Actual return on plan assets is $370000● There are no prior service costs to amortize ● Annual funding contribution is $112000 Benefits paid to retirees during the year are $92000 Average service life of all covered employees is 15 years. The projected benefit obligation on January 1, 2026 was $1320000 The value of plan assets on January 1, 2026 was $1120000. The balance in Other Comprehensive Income - Gains/Losses is a $355000 credit on December 31, 2025. What is the unexpected gain or loss for 2026? Select answer from the options below $258000 unexpected gain $258000 unexpected loss $40000 unexpected gain $40000 unexpected loss

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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On January 1, 2020, McGee Co. had the following balances: Projected benefit obligation $6,400,000 Fair value of plan assets 6,000,000 Other data related to the pension plan for 2019: contributions to the plan 400,000 Benefits paid 350,000 On 1/1/2020, prior service cost was granted having a present value of 150,000 Actual return on plan assets 430,000 Settlement rate 9% Expected rate of return 7% Amortized Prior Service cost…
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Vala
Mukh
Flint Company adopts acceptable accounting for its defined benefit pension plan on January 1, 2019, with the following beginning balances: plan assets $200,700; projected benefit obligation $253,000. Other data relating to 3 years' operation of the plan are as follows. 2019 2020 2021 Annual service cost $16,000 $19,100 $25,900 Settlement rate and expected rate of return 10 % 10 % 10 % Actual return on plan assets 18,300 22,120 23,500 Annual funding (contributions) 16,000 39,700 48.700 Benefits paid 13,800 16,600 20,700 Prior service cost (plan amended, 1/1/20) 160,500 Amortization of prior service cost 55,000 41,600 Change in actuarial assumptions establishes a December 31. 2021, projected benefit obligation of 519,300 Dec. 31, Pension Expense 89618 2021 Pension Asset/Liability 19800 Other Comprehensive Income (G/L) 19118 Other Comprehensive Income (PSC) 41600 Cash 48700
The following data are for the pension plan for the employees of Oriole Company. 1/1/20 12/31/20 12/31/21 Accumulated benefit obligation $ 5300000 $ 5500000 $ 7100000 Projected benefit obligation 5700000 5900000 7700000 Plan assets (at fair value) 4900000 6300000 6900000 AOCL - net loss 987000 1030000 Settlement rate (for year) 10% 10% Expected rate of return (for year) 7% 7% Oriole's contribution was $870000 in 2021 and benefits paid were $780000. Oriole estimates that the average remaining service life is 15 years. Assume that the actual return on plan assets in 2021 was $560000. The unexpected gain on plan assets in 2021 was $70000. $77000. $119000. O $130000.
At January 1, 2025, Crane Company had plan assets of $254,500 and a projected benefit obligation of the same amount. During 2025, service cost was $26,600, the settlement rate was 10%, actual and expected return on plan assets were $24,500, contributions were $20,800, and benefits paid were $16,800. Prepare a pension worksheet for Crane for 2025.
Presented below is information related to Mikell Department Stores, Inc. pension plan for 2022. Service cost 375,000 Funding contribution for 2022 300,000 Settlement rate used in actuarial computation 8% Expected and actual return on plan assets 7% Amortization of Prior Service Costs 70,000 Amortization of net gains 35,000 Projected benefit obligation (at beginning of year) 420,000 Market-related (and fair) value of plan assets (at beginning of year) 380,000 No benefits were paid during 2022. Required: (a) Compute the amount of pension expense to be reported for 2022. (b) Prepare the journal entry to record pension expense for 2022.
Kmu
Sunland Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets. Projected Benefit Obligation 2024 $2,160,000 $2,052,000 2025 2,592,000 2,700,000 2026 2,808,000 3,240,000 2027 Year The average remaining service life per employee in 2024 and 2025 is 10 years; and in 2026 and 2027, is 12 years. The net gain or loss that occurred during each year is as follows: 2024, $302,400 loss; 2025, $97,200 loss; 2026, $11,880 loss; and 2027, $27,000 gain. (In working the solution, the gains and losses must be aggregated to arrive at year-end balances.) 2024 Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the four years, setting up an appropriate schedule. (Do not leave any answer field blank. Enter O for amounts.) Minimum Amortization of Loss 2025 3,186,000 2026 3,888,000 2027 Plan Assets Value 100