Oriole, Inc. received the following information from its pension plan trustee concerning the operation of the company's defined-benefit pension plan for the year ended December 31, 2021. 1/1/21 12/31/21 Accumulated benefit obligation $ 3510000 $ 1680000 Net (gains) and losses 1490000 143000 Projected benefit obligation 6690000 6840000 Pension assets (at fair value) 3510000 4041000 The service cost component of pension expense for 2021 is $523000 and the amortization of prior service cost due to an increase in benefits is $111000. The settlement rate is 12% and the expected rate of return is 6%. What is the amount of pension expense for 2021? $1284800 $1226200 $1083200 $815800
Oriole, Inc. received the following information from its pension plan trustee concerning the operation of the company's defined-benefit pension plan for the year ended December 31, 2021. 1/1/21 12/31/21 Accumulated benefit obligation $ 3510000 $ 1680000 Net (gains) and losses 1490000 143000 Projected benefit obligation 6690000 6840000 Pension assets (at fair value) 3510000 4041000 The service cost component of pension expense for 2021 is $523000 and the amortization of prior service cost due to an increase in benefits is $111000. The settlement rate is 12% and the expected rate of return is 6%. What is the amount of pension expense for 2021? $1284800 $1226200 $1083200 $815800
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 1E
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Oriole, Inc. received the following information from its pension plan trustee concerning the operation of the company's defined-benefit pension plan for the year ended December 31, 2021.
| 1/1/21 | 12/31/21 | |||||||
| Accumulated benefit obligation | $ | 3510000 | $ | 1680000 | ||||
| Net (gains) and losses | 1490000 | 143000 | ||||||
| Projected benefit obligation | 6690000 | 6840000 | ||||||
| Pension assets (at fair value) | 3510000 | 4041000 |
The service cost component of pension expense for 2021 is $523000 and the amortization of prior service cost due to an increase in benefits is $111000. The settlement rate is 12% and the expected
$1284800
$1226200
$1083200
$815800
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