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Projected benefit obligation Market-related and fair value of plan assets Accumulated benefit obligation Accumulated OCI (G/L)-Net gain (a) The service cost component of pension expense for employee services rendered in the current year amounted to $76,000 and the amortization of prior service cost was $118,100. The company's actual funding (contributions) of the plan in 2025 amounted to $253,000. The expected return on plan assets and the actual rate were both 10% ; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of $1,181,000 on January 1, 2025. Assume no benefits paid in 2025. Service Cost Determine the amounts of the components of pension expense that should be recognized by the company in 2025. (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45).) Interest on Projected Benefit Obligation January 1, 2025 $1,474,000 800,000 1,594,000 Components of Pension Expense Expected Return on Plan Assets Amortization of Prior Service Cost Pension Expense 0 December 31, 2025 $1,500,000 1,133,000 1,712,100 (197,400) s

Projected benefit obligation Market-related and fair value of plan assets Accumulated benefit obligation Accumulated OCI (G/L)-Net gain (a) The service cost component of pension expense for employee services rendered in the current year amounted to $76,000 and the amortization of prior service cost was $118,100. The company's actual funding (contributions) of the plan in 2025 amounted to $253,000. The expected return on plan assets and the actual rate were both 10% ; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of $1,181,000 on January 1, 2025. Assume no benefits paid in 2025. Service Cost Determine the amounts of the components of pension expense that should be recognized by the company in 2025. (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45).) Interest on Projected Benefit Obligation January 1, 2025 $1,474,000 800,000 1,594,000 Components of Pension Expense Expected Return on Plan Assets Amortization of Prior Service Cost Pension Expense 0 December 31, 2025 $1,500,000 1,133,000 1,712,100 (197,400) s

FINANCIAL ACCOUNTING
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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Projected benefit obligation Market-related and fair value of plan assets Accumulated benefit obligation Accumulated OCI (G/L)-Net gain (a) The service cost component of pension expense for employee services rendered in the current year amounted to $76,000 and the amortization of prior service cost was $118,100. The company's actual funding (contributions) of the plan in 2025 amounted to $253,000. The expected return on plan assets and the actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of $1,181,000 on January 1, 2025. Assume no benefits paid in 2025. Service Cost Determine the amounts of the components of pension expense that should be recognized by the company in 2025. (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45).) Interest on Projected Benefit Obligation January 1, 2025 $1,474,000 800,000 1,594,000 Components of Pension Expense Expected Return on Plan Assets Amortization of Prior Service Cost Pension Expense 0 December 31, 2025 $1,500,000 1,133,000 1,712,100 (197,400) 14
Transcribed Image Text:Projected benefit obligation Market-related and fair value of plan assets Accumulated benefit obligation Accumulated OCI (G/L)-Net gain (a) The service cost component of pension expense for employee services rendered in the current year amounted to $76,000 and the amortization of prior service cost was $118,100. The company's actual funding (contributions) of the plan in 2025 amounted to $253,000. The expected return on plan assets and the actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of $1,181,000 on January 1, 2025. Assume no benefits paid in 2025. Service Cost Determine the amounts of the components of pension expense that should be recognized by the company in 2025. (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45).) Interest on Projected Benefit Obligation January 1, 2025 $1,474,000 800,000 1,594,000 Components of Pension Expense Expected Return on Plan Assets Amortization of Prior Service Cost Pension Expense 0 December 31, 2025 $1,500,000 1,133,000 1,712,100 (197,400) 14
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