Oriole Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2025, the following balances related to this plan. Plan assets (market-related value) $477,000 Projected benefit obligation Pension asset/liability 669,000 192,000 Cr. Prior service cost Net gain or loss (debit) 89,000 92,000 As a result of the operation of the plan during 2025, the actuary provided the following additional data for 2025. Service cost Settlement rate, 9%; expected return rate, 10% $96,000 Actual return on plan assets Amortization of prior service cost 44,000 26,000 Contributions 122.000 Benefits paid retirees 76,000 Average remaining service life of active employees 10 years (a1) (a2) Using the preceding data, compute pension expense for Oriole for the year 2025 by preparing a pension worksheet that shows the journal entry for pension expense. (Enter all amounts as positive.)

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 7E
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Oriole Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2025, the following balances related to this plan.
Plan assets (market-related value)
$477,000
Projected benefit obligation
Pension asset/liability
669,000
192,000 Cr.
Prior service cost
Net gain or loss (debit)
89,000
92,000
As a result of the operation of the plan during 2025, the actuary provided the following additional data for 2025.
Service cost
Settlement rate, 9%; expected return rate, 10%
$96,000
Actual return on plan assets
Amortization of prior service cost
44,000
26,000
Contributions
122.000
Benefits paid retirees
76,000
Average remaining service life of active employees
10 years
(a1)
(a2)
Using the preceding data, compute pension expense for Oriole for the year 2025 by preparing a pension worksheet that shows
the journal entry for pension expense. (Enter all amounts as positive.)
Transcribed Image Text:Oriole Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2025, the following balances related to this plan. Plan assets (market-related value) $477,000 Projected benefit obligation Pension asset/liability 669,000 192,000 Cr. Prior service cost Net gain or loss (debit) 89,000 92,000 As a result of the operation of the plan during 2025, the actuary provided the following additional data for 2025. Service cost Settlement rate, 9%; expected return rate, 10% $96,000 Actual return on plan assets Amortization of prior service cost 44,000 26,000 Contributions 122.000 Benefits paid retirees 76,000 Average remaining service life of active employees 10 years (a1) (a2) Using the preceding data, compute pension expense for Oriole for the year 2025 by preparing a pension worksheet that shows the journal entry for pension expense. (Enter all amounts as positive.)
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