Oriole Company has 140 employees who are expected to receive benefits under the company's defined-benefit pension plan. The total number of service-years of these employees is 1,400. The actuary for the company's pension plan calculated the following net gains and losses: For the Year Ended December 31 (Gain) Or Loss 2025 $580,000 2026 (494,000) 2027 930,000 Prior to 2025, there was no unrecognized net gain or loss. Information about the company's projected benefit obligation and market-related (and fair) value of plan assets follows: As of January 1 2025 2026 2027 Projected benefit obligation $2,040,000 Fair value of plan assets $2,280,000 $2,880,000 1,620,000 2,400,000 2,490,000 Based on the above information about Oriole Company, prepare a schedule which reflects the amount of net gain or loss to be amortized by the company as a component of pension expense for the years 2025, 2026, and 2027. The company amortizes net gains or losses using the straight-line method over the average service life of participating employees. (Do not leave any answer field blank. Enter O for amounts.)
Oriole Company has 140 employees who are expected to receive benefits under the company's defined-benefit pension plan. The total number of service-years of these employees is 1,400. The actuary for the company's pension plan calculated the following net gains and losses: For the Year Ended December 31 (Gain) Or Loss 2025 $580,000 2026 (494,000) 2027 930,000 Prior to 2025, there was no unrecognized net gain or loss. Information about the company's projected benefit obligation and market-related (and fair) value of plan assets follows: As of January 1 2025 2026 2027 Projected benefit obligation $2,040,000 Fair value of plan assets $2,280,000 $2,880,000 1,620,000 2,400,000 2,490,000 Based on the above information about Oriole Company, prepare a schedule which reflects the amount of net gain or loss to be amortized by the company as a component of pension expense for the years 2025, 2026, and 2027. The company amortizes net gains or losses using the straight-line method over the average service life of participating employees. (Do not leave any answer field blank. Enter O for amounts.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Oriole Company has 140 employees who are expected to receive benefits under the company's defined-benefit pension plan. The total
number of service-years of these employees is 1,400. The actuary for the company's pension plan calculated the following net gains
and losses:
For the Year Ended
December 31
(Gain) Or Loss
2025
$580,000
2026
(494,000)
2027
930,000
Prior to 2025, there was no unrecognized net gain or loss.
Information about the company's projected benefit obligation and market-related (and fair) value of plan assets follows:
As of January 1
2025
2026
2027
Projected benefit obligation $2,040,000
Fair value of plan assets
$2,280,000
$2,880,000
1,620,000
2,400,000
2,490,000
Based on the above information about Oriole Company, prepare a schedule which reflects the amount of net gain or loss to be
amortized by the company as a component of pension expense for the years 2025, 2026, and 2027. The company amortizes net gains
or losses using the straight-line method over the average service life of participating employees. (Do not leave any answer field blank.
Enter O for amounts.)
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