Splish Co. has the following defined benefit pension plan balances on January 1, 2020.Projected benefit obligationFair value of plan assets$4,640,0004,640,000The interest (settlement) rate applicable to the plan is 10%. On January 1, 2021, the company amends its pensionagreement so that prior service costs of $603,000 are created. Other data related to the pension plan are:20202021Service cost$151,000$170,000Prior service cost amortization090,000Contributions (funding) to the plan202,000187,000Benefits paid222,000278,000Actual return on plan assets251,000348,000Expected rate of return on assets6 %8 %Splish Co.Partial Income StatementFor the Year Ended December 31, 2021Other Income/ExpensesComprehensive Income (Loss)Splish Co.Balance Sheet (Partial)December 31, 2021Stockholders' EquityCommon StockLong-term InvestmentsAccumulated Other Comprehensive Loss (PSC)Accumulated Other Comprehensive Loss (G/L) ✓+A51300041680

OCI= OTHER COMPREHENSIVE INCOMEEBE= EMPLOYEE BENEFIT EXPENSEFVPA= FAIR VALUE OF PLAN ASSET PBO=…

Answered: Splish Co. has the following defined…

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 6RE

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