The accountant for Marlin Corporation has developed the following information for the company's defined-benefit pension plan for 2021: Service cost $2,000,000 Actual return on plan assets 1,100,000 Annual contribution to the plan 820,000 Prior service cost from pension plan amendment in 2019: 2,500,000 Benefits paid to retirees 550,000 Average remaining service life of employees 10 years Interest rate 10% Expected rate of return on plan assets 12% Plan Asset, beginning balance $10,000,000 PBO, beginning balance $9,000,000 The accumulated benefit obligation at December 31, 2021, amounted to $8,500,000. Required: b. Calculate the ending balance of Projected Benefit Obligation in 2021. c. Calculate the pension expense in 2021. d. What’s the ending balance of net gain (loss) - AOCI in 2021? e. What’s the ending balance of prior service cost – AOCI in 2021?
The accountant for Marlin Corporation has developed the following information for the company's defined-benefit pension plan for 2021:
Service cost $2,000,000
Actual return on plan assets 1,100,000
Annual contribution to the plan 820,000
Prior service cost from pension plan amendment in 2019: 2,500,000
Benefits paid to retirees 550,000
Average remaining service life of
employees 10 years
Interest rate 10%
Expected
Plan Asset, beginning balance $10,000,000
PBO, beginning balance $9,000,000
The accumulated benefit obligation at December 31, 2021, amounted to $8,500,000.
Required:
b. Calculate the ending balance of Projected Benefit Obligation in 2021.
c. Calculate the pension expense in 2021.
d. What’s the ending balance of net gain (loss) - AOCI in 2021?
e. What’s the ending balance of prior service cost – AOCI in 2021?
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