On January 1, 2019, Solano Incorporated amended its pension plan which caused an increase of $6,000,000 in its projected benefit obligation. The company has 400 employees who are expected to receive benefits under the company's defined-benefit pension plan. The personnel department provided the following information regarding expected employee retirements: Expected Retirements Number of Employees On December 31 40 2019 120 2020 60 2021 160 2022 20 2023 400 The company plans to use the years-of-service method in calculating the amortization of prior service cost as a component of pension expense. Instructions Prepare a schedule which shows the amount of annual prior service cost amortization that the company will recognize as a component of pension expense from 2019 through 2023.
On January 1, 2019, Solano Incorporated amended its pension plan which caused an increase of $6,000,000 in its projected benefit obligation. The company has 400 employees who are expected to receive benefits under the company's defined-benefit pension plan. The personnel department provided the following information regarding expected employee retirements:
Expected Retirements
Number of Employees On December 31
40 2019
120 2020
60 2021
160 2022
20 2023
400
The company plans to use the years-of-service method in calculating the amortization of prior service cost as a component of pension expense.
Instructions
Prepare a schedule which shows the amount of annual prior service cost amortization that the company will recognize as a component of pension expense from 2019 through 2023.
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