The funded status of Patel Paneling Incorporated's defined benefit pension plan and the balances in prior service cost and the net gain-pensions, are given below. 2024 ($ in thousands) 2024 Beginning Balances Ending Balances $ 2,501 Projected benefit obligation $ 2,300 Plan assets Funded status 2,400 2,591 100 90 Prior service cost-AOCI 325 Net gain-AOCI 330 300 300 Retirees were paid $270,000, and the employer contribution to the pension fund was $245,000 at the end of 2024. The expected rate of return on plan assets was 10%, and the actuary's discount rate is 7%. There were no changes in actuarial estimates and assumptions regarding the PBO. Required: 1. Determine the actual return on plan assets of 2024. 2. Determine the loss or gain on plan assets of 2024. 3. Determine the service cost of 2024. 4. Determine the pension expense of 2024. 5. Determine the average remaining service life of active employees (used to determine amortization of the net gain) for 2024. Note: For all requirements, enter your answers in thousands (i.e. 200,000 should be entered as 200). 1. Actual return 2. 3. Service cost 4. Pension expense 5. Average service period thousand thousand thousand thousand years

The funded status of Patel Paneling Incorporated's defined benefit pension plan and the balances in prior service cost and the net gain-pensions, are given below. 2024 ($ in thousands) 2024 Beginning Balances Ending Balances $ 2,501 Projected benefit obligation $ 2,300 Plan assets Funded status 2,400 2,591 100 90 Prior service cost-AOCI 325 Net gain-AOCI 330 300 300 Retirees were paid $270,000, and the employer contribution to the pension fund was $245,000 at the end of 2024. The expected rate of return on plan assets was 10%, and the actuary's discount rate is 7%. There were no changes in actuarial estimates and assumptions regarding the PBO. Required: 1. Determine the actual return on plan assets of 2024. 2. Determine the loss or gain on plan assets of 2024. 3. Determine the service cost of 2024. 4. Determine the pension expense of 2024. 5. Determine the average remaining service life of active employees (used to determine amortization of the net gain) for 2024. Note: For all requirements, enter your answers in thousands (i.e. 200,000 should be entered as 200). 1. Actual return 2. 3. Service cost 4. Pension expense 5. Average service period thousand thousand thousand thousand years

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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