The actuary for the pension plan of Pharoah Inc. calculated the following net gains and losses. Incurred during the Year 2025 Other information about the company's pension obligation and plan assets is as follows. As of January 1, 2025 2026 2027 2028 Year 2026 2025 2027 2026 2028 2027 2028 (Gain) or Loss $301,050 476,000 (209,300) (287.700) Projected Benefit Obligation $4,027.200 4,507,600 5,029,300 Pharoah 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 4,400. 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 4.200480 Prepare a schedule which reflects the minimum amount of accumulated OCI (G/L) amortized as a component of net periodic pension expense for each of the years 2025, 2026 2027, and 2028. Apply the "corridor approach in determining the amount to be amortized each year. (Round answers to 0 decimal places, 2,500) Plan Assets (market-related asset value) $2.403.600 2,187,600 2.602.800 Projected Beneht Obligation 3.026.800 Plan Assets 11 Corridor Accumulated OCI (G/L)
The actuary for the pension plan of Pharoah Inc. calculated the following net gains and losses. Incurred during the Year 2025 Other information about the company's pension obligation and plan assets is as follows. As of January 1, 2025 2026 2027 2028 Year 2026 2025 2027 2026 2028 2027 2028 (Gain) or Loss $301,050 476,000 (209,300) (287.700) Projected Benefit Obligation $4,027.200 4,507,600 5,029,300 Pharoah 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 4,400. 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 4.200480 Prepare a schedule which reflects the minimum amount of accumulated OCI (G/L) amortized as a component of net periodic pension expense for each of the years 2025, 2026 2027, and 2028. Apply the "corridor approach in determining the amount to be amortized each year. (Round answers to 0 decimal places, 2,500) Plan Assets (market-related asset value) $2.403.600 2,187,600 2.602.800 Projected Beneht Obligation 3.026.800 Plan Assets 11 Corridor Accumulated OCI (G/L)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:The actuary for the pension plan of Pharoah Inc. calculated the following net gains and losses
Incurred during the Year
2025
As of January 1,
2025
2026
2027
2028
Other information about the company's pension obligation and plan assets is as follows.
Year
2026
2027
2028
2025
2026
(Gain) or Loss
$301,050
2027
2028
476,000
(209,300)
(287.700)
Projected Benefit
Obligation
$4,027.200
4,507,600
Pharoah 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 4,400. 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
5,029,300
Prepare a schedule which reflects the minimum amount of accumulated OCI (G/L) amortized as a component of net periodic pension
expense for each of the years 2025, 2026 2027, and 2028. Apply the "corridor" approach in determining the amount to be amortized
each year. (Round answers to O decimal places, 2,500)
4,200,480
Projected Benent
Obligation
Plan Assets
(market-related asset value)
$2.403.600
2,187,600
2.602.800
3.026.800
Plan
Assets
11
Corridor
Accumulated
OCI (G/L)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education