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Shiloh, Inc. has a noncontributory, defined benefit pension plan for its 500 employees. The company's actuary provided the following information: • On January 1, 2025: o Accumulated other comprehensive income (loss) (PSC): $ 210 o Pension plan assets (fair value and market-related asset value): 600 o Projected benefit obligation 860 o Pension asset/liability 260 o The average remaining service period for the participating employees is 10 years. All employees are expected to receive benefits under the plan. • On December 31, 2025, the actuary calculated that o Pension plan assets (fair value and market-related asset value); o Projected benefit obligation o Service costs for 2025 $ 740 996 100 o The expected return on plan assets and the settlement rate were both 10%. o The company's current year's contribution to the pension plan amounted to $80. o Benefits paid during the year were $50.

Shiloh, Inc. has a noncontributory, defined benefit pension plan for its 500 employees. The company's actuary provided the following information: • On January 1, 2025: o Accumulated other comprehensive income (loss) (PSC): $ 210 o Pension plan assets (fair value and market-related asset value): 600 o Projected benefit obligation 860 o Pension asset/liability 260 o The average remaining service period for the participating employees is 10 years. All employees are expected to receive benefits under the plan. • On December 31, 2025, the actuary calculated that o Pension plan assets (fair value and market-related asset value); o Projected benefit obligation o Service costs for 2025 $ 740 996 100 o The expected return on plan assets and the settlement rate were both 10%. o The company's current year's contribution to the pension plan amounted to $80. o Benefits paid during the year were $50.

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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1) compute the actual return on plan asset

2) determine the componets of pension expense that the company would recognize in 2025

3) compute the amount of the 2025 increase/decrease in gains or losses

4) prepare the journal entry to record the pension expense and the company's funding of the pension plan in 2025

 

Name: Shiloh, Inc. has a noncontributory, defined benefit pension plan for its 500 employees. The company's actuary provided the following information: On January 1, 2025: o Accumulated other comprehensive income (loss) (PSC): $ 210 600 860 260 The average remaining service period for the participating employees is 10 years. All employees are expected to receive benefits under the plan.. O Pension plan assets (fair value and market-related asset value): o Projected benefit obligation o Pension asset/liability o ● On December 31, 2025, the actuary calculated that o Pension plan assets (fair value and market-related asset value): o Projected benefit obligation o Service costs for 2025 $ 740 996 100 o The expected return on plan assets and the settlement rate were both 10%. o The company's current year's contribution to the pension plan amounted to $80. o Benefits paid during the year were $50.
Transcribed Image Text:Name: Shiloh, Inc. has a noncontributory, defined benefit pension plan for its 500 employees. The company's actuary provided the following information: On January 1, 2025: o Accumulated other comprehensive income (loss) (PSC): $ 210 600 860 260 The average remaining service period for the participating employees is 10 years. All employees are expected to receive benefits under the plan.. O Pension plan assets (fair value and market-related asset value): o Projected benefit obligation o Pension asset/liability o ● On December 31, 2025, the actuary calculated that o Pension plan assets (fair value and market-related asset value): o Projected benefit obligation o Service costs for 2025 $ 740 996 100 o The expected return on plan assets and the settlement rate were both 10%. o The company's current year's contribution to the pension plan amounted to $80. o Benefits paid during the year were $50.
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