(1)
Pension plan: This is the plan devised by corporations to pay the employees an income after their retirement, in the form of pension.
Pension expense: Pension expense is an expense to the employer paid as compensation after the completion of services performed by the employees.
Pension expense includes the following components:
- Service cost
- Interest cost
- Expected return on plan assets
- Amortization of prior service cost
- Amortization of net loss or net gain
To reconcile: The beginning balance of Net Loss–OCI account with ending balance of Net Loss–OCI account related to pension plan
(2)
The average service life of employees from the amortization of net loss or gain formula
(3)
Other postretirement benefits: The postretirement benefits which are provided by employers, other than pensions, like medical insurance, life insurance, and legal services, and healthcare benefits, are referred to as other postretirement benefits.
To reconcile: The beginning balance of Net Gain–OCI account with ending balance of Net Gain–OCI account related to other postretirement benefit plan
(4)
Net income, if Incorporation M had assumed 1% of lower health care trend for the year 2015, and the tax rate is 35%

Want to see the full answer?
Check out a sample textbook solution
Chapter 17 Solutions
Intermediate Accounting, 10 Ed
- Helparrow_forwardDetermine the predetermined overhead rate for 2022.arrow_forwardSin Carter's start-up business is growing rapidly, but he needs $300,000 in additional funding to support continued expansion. Sin and an angel investor agree that the business is currently worth $1,200,000, and the angel investor is willing to invest the $300,000 needed. Sin currently owns all 60,000 shares in his business. What is a fair price per share, and how many additional shares must Sin sell to the angel investor?arrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Financial & Managerial AccountingAccountingISBN:9781285866307Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
- Corporate Financial AccountingAccountingISBN:9781305653535Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage LearningSurvey of Accounting (Accounting I)AccountingISBN:9781305961883Author:Carl WarrenPublisher:Cengage LearningPrinciples of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College



