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Wildhorse Company sponsors a defined benefit pension plan for its 600 employees. The company's actuary provided the following information about the plan. January 1, December 31, 2025 2025 2026 Projected benefit obligation $2,780,000 $3,622,200 $4,163,976 Accumulated benefit obligation 1,900,000 2,413,000 2,902,000 Plan assets (fair value and market-related asset value) 1,700,000 2,901,000 3,795,000 Accumulated net (gain) or loss (for purposes of the corridor calculation) Discount rate (current settlement rate) Actual and expected asset return rate Contributions 0 196,000 (23,000) 9% 8% 10% 10% 1,031,000 603,900 The average remaining service life per employee is 10.5 years. The service cost component of net periodic pension expense for employee services rendered amounted to $396,000 in 2025 and $471,000 in 2026. The accumulated OCI (PSC) on January 1, 2025, $1.375.500. No benefits have been paid

Wildhorse Company sponsors a defined benefit pension plan for its 600 employees. The company's actuary provided the following information about the plan. January 1, December 31, 2025 2025 2026 Projected benefit obligation $2,780,000 $3,622,200 $4,163,976 Accumulated benefit obligation 1,900,000 2,413,000 2,902,000 Plan assets (fair value and market-related asset value) 1,700,000 2,901,000 3,795,000 Accumulated net (gain) or loss (for purposes of the corridor calculation) Discount rate (current settlement rate) Actual and expected asset return rate Contributions 0 196,000 (23,000) 9% 8% 10% 10% 1,031,000 603,900 The average remaining service life per employee is 10.5 years. The service cost component of net periodic pension expense for employee services rendered amounted to $396,000 in 2025 and $471,000 in 2026. The accumulated OCI (PSC) on January 1, 2025, $1.375.500. No benefits have been paid

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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Wildhorse Company sponsors a defined benefit pension plan for its 600 employees. The company's actuary provided the following information about the plan. January 1, December 31, 2025 2025 2026 Projected benefit obligation $2,780,000 $3,622,200 $4,163,976 Accumulated benefit obligation 1,900,000 2,413,000 2,902,000 Plan assets (fair value and market-related asset value) 1,700,000 2,901,000 3,795,000 Accumulated net (gain) or loss (for purposes of the corridor calculation) Discount rate (current settlement rate) Actual and expected asset return rate Contributions 0 196,000 (23,000) 9% 8% 10% 10% 1,031,000 603,900 The average remaining service life per employee is 10.5 years. The service cost component of net periodic pension expense for employee services rendered amounted to $396,000 in 2025 and $471,000 in 2026. The accumulated OCI (PSC) on January 1, 2025, was $1,375,500. No benefits have been paid. (a) Compute the amount of accumulated OCI (PSC) to be amortized as a component of net periodic pension expense for each of the years 2025 and 2026. Amount of accumulated OCI (PSC) to be amortized for the year 2025 $ Amount of accumulated OCI (PSC) to be amortized for the year 2026 $
Transcribed Image Text:Wildhorse Company sponsors a defined benefit pension plan for its 600 employees. The company's actuary provided the following information about the plan. January 1, December 31, 2025 2025 2026 Projected benefit obligation $2,780,000 $3,622,200 $4,163,976 Accumulated benefit obligation 1,900,000 2,413,000 2,902,000 Plan assets (fair value and market-related asset value) 1,700,000 2,901,000 3,795,000 Accumulated net (gain) or loss (for purposes of the corridor calculation) Discount rate (current settlement rate) Actual and expected asset return rate Contributions 0 196,000 (23,000) 9% 8% 10% 10% 1,031,000 603,900 The average remaining service life per employee is 10.5 years. The service cost component of net periodic pension expense for employee services rendered amounted to $396,000 in 2025 and $471,000 in 2026. The accumulated OCI (PSC) on January 1, 2025, was $1,375,500. No benefits have been paid. (a) Compute the amount of accumulated OCI (PSC) to be amortized as a component of net periodic pension expense for each of the years 2025 and 2026. Amount of accumulated OCI (PSC) to be amortized for the year 2025 $ Amount of accumulated OCI (PSC) to be amortized for the year 2026 $
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