Pension data for Sterling Properties include the following: ($ in thousands) Service cost, 2024 $ 116 Projected benefit obligation, January 1, 2024 550 Plan assets (fair value), January 1, 2024 600 Prior service cost—AOCI (2024 amortization, $7) 86 Net loss—AOCI (2024 amortization, $2) 107 Interest rate, 6% Expected return on plan assets, 10% Actual return on plan assets, 11% Required:
Pension data for Sterling Properties include the following: ($ in thousands) Service cost, 2024 $ 116 Projected benefit obligation, January 1, 2024 550 Plan assets (fair value), January 1, 2024 600 Prior service cost—AOCI (2024 amortization, $7) 86 Net loss—AOCI (2024 amortization, $2) 107 Interest rate, 6% Expected return on plan assets, 10% Actual return on plan assets, 11% Required:
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Pension data for Sterling Properties include the following:
| ($ in thousands) | |
| Service cost, 2024 | $ 116 |
|---|---|
| Projected benefit obligation, January 1, 2024 | 550 |
| Plan assets (fair value), January 1, 2024 | 600 |
| Prior service cost—AOCI (2024 amortization, $7) | 86 |
| Net loss—AOCI (2024 amortization, $2) | 107 |
| Interest rate, 6% | |
| Expected |
|
| Actual return on plan assets, 11% |
Required:
Assume Sterling Properties prepares its financial statements according to International Financial Reporting Standards (IFRS). The interest rate on high-grade corporate bonds is 6%. Determine the net pension cost.
Note: Enter your answer in thousands (i.e., 10,000 should be entered as 10).
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