Problem 17-14 (Algo) Relationship among pension elements [LO17-3, 17-4, 17-5, 17-6, 17-7, 17-8] The funded status of Hilton Paneling Incorporated's defined benefit pension plan and the balances in prior service cost and the net gain-pensions, are given below. Projected benefit obligation Plan assets Funded status Prior service cost-AOCI Net gain-AOCI ($ in thousands) 2024 Beginning 2024 Ending Balances Balances $ 3,100 $ 3,301 3,200 3,471 100 360 370 170 320 325 Retirees were paid $262,000, and the employer contribution to the pension fund was $253,000 at the end of 2024. The expected rate of return on plan assets was 10%, and the actuary's discount rate is 7%. There were no changes in actuarial estimates and assumptions regarding the PBO. Required: 1. Determine the actual return on plan assets of 2024. 2. Determine the loss or gain on plan assets of 2024. 3. Determine the service cost of 2024. 4. Determine the pension expense of 2024
Problem 17-14 (Algo) Relationship among pension elements [LO17-3, 17-4, 17-5, 17-6, 17-7, 17-8] The funded status of Hilton Paneling Incorporated's defined benefit pension plan and the balances in prior service cost and the net gain-pensions, are given below. Projected benefit obligation Plan assets Funded status Prior service cost-AOCI Net gain-AOCI ($ in thousands) 2024 Beginning 2024 Ending Balances Balances $ 3,100 $ 3,301 3,200 3,471 100 360 370 170 320 325 Retirees were paid $262,000, and the employer contribution to the pension fund was $253,000 at the end of 2024. The expected rate of return on plan assets was 10%, and the actuary's discount rate is 7%. There were no changes in actuarial estimates and assumptions regarding the PBO. Required: 1. Determine the actual return on plan assets of 2024. 2. Determine the loss or gain on plan assets of 2024. 3. Determine the service cost of 2024. 4. Determine the pension expense of 2024
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Problem 17-14 (Algo) Relationship among pension elements [LO17-3, 17-4, 17-5, 17-6, 17-7, 17-8]
The funded status of Hilton Paneling Incorporated's defined benefit pension plan and the balances in prior service cost and the net
gain-pensions, are given below.
Projected benefit obligation
Plan assets
Funded status.
Prior service cost-AOCI
Net gain-AOCI
($ in thousands)
2024 Beginning 2024 Ending
Balances
Balances
$ 3,301
$ 3,100
3,200
3,471
170
320
325
Retirees were paid $262,000, and the employer contribution to the pension fund was $253,000 at the end of 2024. The expected
rate of return on plan assets was 10%, and the actuary's discount rate is 7%. There were no changes in actuarial estimates and
assumptions regarding the PBO.
Required:
1. Determine the actual return on plan assets of 2024.
2. Determine the loss or gain on plan assets of 2024.
3. Determine the service cost of 2024.
1. Actual return
2.
3. Service cost
4. Pension expense
5. Average service period
100
360
370
4. Determine the pension expense of 2024.
5. Determine the average remaining service life of active employees (used to determine amortization of the net gain) for 2024.
Note: For all requirements, enter your answers in thousands (i.e. 200,000 should be entered as 200).
thousand
thousand
thousand
thousand
years](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F71a6b9af-79cd-4d12-a858-098c897cdcbb%2Fe15d692a-0c9a-42ed-a6d1-fdf0fcd06f5b%2F4w9eixn_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 17-14 (Algo) Relationship among pension elements [LO17-3, 17-4, 17-5, 17-6, 17-7, 17-8]
The funded status of Hilton Paneling Incorporated's defined benefit pension plan and the balances in prior service cost and the net
gain-pensions, are given below.
Projected benefit obligation
Plan assets
Funded status.
Prior service cost-AOCI
Net gain-AOCI
($ in thousands)
2024 Beginning 2024 Ending
Balances
Balances
$ 3,301
$ 3,100
3,200
3,471
170
320
325
Retirees were paid $262,000, and the employer contribution to the pension fund was $253,000 at the end of 2024. The expected
rate of return on plan assets was 10%, and the actuary's discount rate is 7%. There were no changes in actuarial estimates and
assumptions regarding the PBO.
Required:
1. Determine the actual return on plan assets of 2024.
2. Determine the loss or gain on plan assets of 2024.
3. Determine the service cost of 2024.
1. Actual return
2.
3. Service cost
4. Pension expense
5. Average service period
100
360
370
4. Determine the pension expense of 2024.
5. Determine the average remaining service life of active employees (used to determine amortization of the net gain) for 2024.
Note: For all requirements, enter your answers in thousands (i.e. 200,000 should be entered as 200).
thousand
thousand
thousand
thousand
years
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