Taveras Enterprises provides the following information relative to its defined benefit pension plan. Balances or Values at December 31, 2020 Projected benefit obligation $2,737,000 Accumulated benefit obligation 1,980,000 Fair value of plan assets 2,278,329 Accumulated OCI (PSC) 210,000 Accumulated OCI—Net loss (1/1/20 balance, ‐0‐) 45,680 Pension liability 458,671 Other pension plan data for 2020: Service cost 94,000 Prior service cost amortization 42,000 Actual return on plan assets 130,000 Expected return on plan assets 175,680 Interest on January 1, 2020, projected benefit obligation 253,000 Contributions to plan 93,329 Benefits paid 140,000 Instructions Prepare the note disclosing the components of pension expense for the year 2020. Determine the amounts of other comprehensive income and comprehensive income for 2020. Net income for 2020 is $35,000. Compute the amount of accumulated other comprehensive income reported at December 31, 2020.
Taveras Enterprises provides the following information relative to its defined benefit pension plan. Balances or Values at December 31, 2020 Projected benefit obligation $2,737,000 Accumulated benefit obligation 1,980,000 Fair value of plan assets 2,278,329 Accumulated OCI (PSC) 210,000 Accumulated OCI—Net loss (1/1/20 balance, ‐0‐) 45,680 Pension liability 458,671 Other pension plan data for 2020: Service cost 94,000 Prior service cost amortization 42,000 Actual return on plan assets 130,000 Expected return on plan assets 175,680 Interest on January 1, 2020, projected benefit obligation 253,000 Contributions to plan 93,329 Benefits paid 140,000 Instructions Prepare the note disclosing the components of pension expense for the year 2020. Determine the amounts of other comprehensive income and comprehensive income for 2020. Net income for 2020 is $35,000. Compute the amount of accumulated other comprehensive income reported at December 31, 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Taveras Enterprises provides the following information relative to its defined benefit pension plan.
| Balances or Values at December 31, 2020 | ||
| Projected benefit obligation | $2,737,000 | |
| Accumulated benefit obligation | 1,980,000 | |
| Fair value of plan assets | 2,278,329 | |
| Accumulated OCI (PSC) | 210,000 | |
| Accumulated OCI—Net loss (1/1/20 balance, ‐0‐) | 45,680 | |
| Pension liability | 458,671 | |
| Other pension plan data for 2020: | ||
| Service cost | 94,000 | |
| Prior service cost amortization | 42,000 | |
| Actual return on plan assets | 130,000 | |
| Expected return on plan assets | 175,680 | |
| Interest on January 1, 2020, projected benefit obligation | 253,000 | |
| Contributions to plan | 93,329 | |
| Benefits paid | 140,000 |
Instructions
- Prepare the note disclosing the components of pension expense for the year 2020.
- Determine the amounts of other comprehensive income and comprehensive income for 2020. Net income for 2020 is $35,000.
- Compute the amount of accumulated other comprehensive income reported at December 31, 2020.
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