Oriole estimates that the average remaining service life is 15 years. Oriole's contribution was $472,000 in 2021 and benefits paid were $230,000.

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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Testbank Exercise 112

The following information is for the pension plan for the employees of Oriole, Inc.

    12/31/20     12/31/21  
Accumulated benefit obligation   $2,740,000     $3,700,000  
Projected benefit obligation   3,040,000     3,940,000  
Fair value of plan assets   3,070,000     3,570,000  
AOCI - Net (gain) or loss   (365,000)   (420,000)
Settlement rate   7%     7%  
Expected rate of return   6%     5%  

Oriole estimates that the average remaining service life is 15 years. Oriole's contribution was $472,000 in 2021 and benefits paid were $230,000.
 
 
 
 
 
Calculate the interest cost for 2021.

Interest cost for 2021   $
 
 
 

LINK TO TEXT
 
 
 
Calculate the actual return on plan assets in 2021.

Actual return on plan assets for 2021   $
 
 
 

LINK TO TEXT
 
 
 
Calculate the unexpected gain or loss in 2021.

Unexpected gain or loss in 2021   $
 
 
 

LINK TO TEXT
 
 
 
Calculate the corridor for 2021 and the amortization of the net gain for 2021. (Round answers to 0 decimal places, e.g. 5,275.)

Corridor for 2021   $
 
Amortization of the net gain for 2021   $
 
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