Concept explainers
a.
The value of total pension cost for the year.
Given information:
Fair value of plan assets at the beginning is $954,500.
Value of PBO at the beginning is $1,020,340.
Service cost is $81,500.
Settlement rate is 10%.
Expected rate on plan assets is 16%.
Actual return on plan assets is $123,400.
Contribution for the year is $67,480.
Benefit paid for the year is $47,440.
AOCI related to prior service cost at the beginning is $65,840.
Amortization of prior service cost is $15,500.
Actuarial loss is $78,625.
Average remaining service life of the employee base is 10 years.
b.
The value of closing balance of plan assets and PBO and indicate the funded status of the plan.
Given information:
Fair value of plan assets at the beginning is $954,500.
Value of PBO at the beginning is $1,020,340.
Service cost is $81,500.
Settlement rate is 10%.
Expected rate on plan assets is 16%.
Actual return on plan assets is $123,400.
Contribution for the year is $67,480.
Benefit paid for the year is $47,440.
AOCI related to prior service cost at the beginning is $65,840.
Amortization of prior service cost is $15,500.
Actuarial loss is $78,625.
Average remaining service life of the employee base is 10 years.
c.
The value of closing balance for accumulated other comprehensive income.
Given information:
Fair value of plan assets at the beginning is $954,500.
Value of PBO at the beginning is $1,020,340.
Service cost is $81,500.
Settlement rate is 10%.
Expected rate on plan assets is 16%.
Actual return on plan assets is $123,400.
Contribution for the year is $67,480.
Benefit paid for the year is $47,440.
AOCI related to prior service cost at the beginning is $65,840.
Amortization of prior service cost is $15,500.
Actuarial loss is $78,625.
Average remaining service life of the employee base is 10 years.
d.
To prepare: The
Given information:
Fair value of plan assets at the beginning is $954,500.
Value of PBO at the beginning is $1,020,340.
Service cost is $81,500.
Settlement rate is 10%.
Expected rate on plan assets is 16%.
Actual return on plan assets is $123,400.
Contribution for the year is $67,480.
Benefit paid for the year is $47,440.
AOCI related to prior service cost at the beginning is $65,840.
Amortization of prior service cost is $15,500.
Actuarial loss is $78,625.
Average remaining service life of the employee base is 10 years.
e.
The reconciliation of the closing balance in accumulated other comprehensive income.
Given information:
Fair value of plan assets at the beginning is $954,500.
Value of PBO at the beginning is $1,020,340.
Service cost is $81,500.
Settlement rate is 10%.
Expected rate on plan assets is 16%.
Actual return on plan assets is $123,400.
Contribution for the year is $67,480.
Benefit paid for the year is $47,440.
AOCI related to prior service cost at the beginning is $65,840.
Amortization of prior service cost is $15,500.
Actuarial loss is $78,625.
Average remaining service life of the employee base is 10 years.
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Chapter 19 Solutions
Intermediate Accounting (2nd Edition)
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Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning