What is the amount of pension expense for 2008? General accounting Randel, Inc. received the following information from its pension plan trusteeconcerning the operation of the company's defined-benefit pension plan for the yearended December 31, 2008.January 1, 2008 December 31, 2008Fair value of pension plan assets$4,200,000$4,500,000Projected benefit obligation4,800,0005,160,000Accumulated benefit obligation840,0001,020,000(90,000)Accumulated OCI - (Gains/Losses) -0-The service cost component of pension expense for 2008 is $360,000 and theamortization of prior service cost due to an increase in benefits is $60,000. Thesettlement rate is 10% and the expected rate of return is 9%. What is the amount ofpension expense for 2008?A. $360,000B. $432,000C. $522,000D. $531,000

Step 1: Define PensionPension is an additional benefit offered by the company to the employee in…

Answered: Randel, Inc. received the following…

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 6MC

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The actuary for the pension plan of Sheridan Inc. calculated the following net gains and losses. Incurred during the Year (Gain) or Loss 2025 2026 $302,750 476,000 2027 (212,000) 2028 (289,000) Other information about the company's pension obligation and plan assets is as follows. Projected Benefit Plan Assets As of January 1, Obligation (market-related asset value) 2025 $3,981,400 $2,397,500 2026 4,538,600 2,194,400 2027 4,962,600 2,605,000 2028 4,248,350 3,065,800 Sheridan Inc. has a stable labor force of 400 employees who are expected to receive benefits under the plan. The total service-years for all participating employees is 5,200. The beginning balance of accumulated OCI (G/L) is zero on January 1, 2025. The market-related value and the fair value of plan assets are the same for the 4-year period. Use the average remaining service life per employee as the basis for amortization. Prepare a schedule which reflects the minimum amount of accumulated OCI (G/L) amortized as a…
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(Pension Expense, Journal Entries, Statement Presentation) Ferreri Company received the following selected information from its pension plan trustee concerning the operation of the company’s defined benefit pension plan for the year ended December 31, 2014. January 1, 2014 December 31, 2014 Projected benefit obligation $1,500,000 $1,527,000 Market-related and fair value of plan assets 800,000 1,130,000 Accumulated benefit obligation 1,600,000 1,720,000 Accumulated OCI (G/L)—Net gain –0– (200,000) The service cost component of pension expense for employee services rendered in the current year amounted to $77,000 and the amortization of prior service cost was $120,000. The company’s actual…
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