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What is the amount of amortization of the other comprehensive income gain or loss in 2026?

What is the amount of amortization of the other comprehensive income gain or loss in 2026?

FINANCIAL ACCOUNTING
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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Information for the Sheridan Company pension plan in 2026 is as follows: . . Service cost is $72000 Settlement rate is 10%, expected rate of return is 10% Actual return on plan assets is $220000 There are no prior service costs to amortize Annual funding contribution is $97000 Benefits paid to retirees during the year are $84000 Average service life of all covered employees is 15 years The projected benefit obligation on January 1, 2026 was $1170000 The value of plan assets on January 1, 2026 was $970000 The balance in Other Comprehensive Income-Gains/Losses is a $205000 credit on December 31, 2025. What is the amount of amortization of the other comprehensive income gain or loss in 2026? O $9700 $3300 $117000 O $5867
Transcribed Image Text:Information for the Sheridan Company pension plan in 2026 is as follows: . . Service cost is $72000 Settlement rate is 10%, expected rate of return is 10% Actual return on plan assets is $220000 There are no prior service costs to amortize Annual funding contribution is $97000 Benefits paid to retirees during the year are $84000 Average service life of all covered employees is 15 years The projected benefit obligation on January 1, 2026 was $1170000 The value of plan assets on January 1, 2026 was $970000 The balance in Other Comprehensive Income-Gains/Losses is a $205000 credit on December 31, 2025. What is the amount of amortization of the other comprehensive income gain or loss in 2026? O $9700 $3300 $117000 O $5867
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