On January 1, 2021, Period Company provided the following information: Fair value of plan assets 13,000,000 Projected benefit obligation (10,000,000) Prepaid/Accrued Benefit Cost 3,000,000 The entity revealed the following transactions affecting the plan for the current year: Current service cost 2,500,000 Past service cost – remaining vesting period of covered employees is 3 years 1,200,000 Contribution to the plan 3,000,000 Benefits paid to retirees 3,500,000 Actual return on plan assets 1,500,000 Decrease in projected benefit obligation due to change in actuarial assumptions 400,000 Discount rate 10% Expected return on plan assets 12%
On January 1, 2021, Period Company provided the following information:
Fair value of plan assets 13,000,000
Projected benefit obligation (10,000,000)
Prepaid/Accrued Benefit Cost 3,000,000
The entity revealed the following transactions affecting the plan for the current year:
Current service cost 2,500,000
Past service cost – remaining vesting period of covered employees is 3 years 1,200,000
Contribution to the plan 3,000,000
Benefits paid to retirees 3,500,000
Actual return on plan assets 1,500,000
Decrease in projected benefit obligation due to change in actuarial assumptions 400,000
Discount
Expected return
w. What is the employee benefit expense for the current year?
x. What is the net remeasurement gain for the current year?
y. What is the projected benefit obligation on December 31, 2021?
z. What amount should be reported as accrued or prepaid benefit cost on December 31, 2021?
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