Bonny Corp. has a defined benefit pension plan for its employees who have an average remaining service
Question:
Bonny Corp. has a defined benefit pension plan for its employees who have an average remaining service life of 10 years. The following information is available for 2008 and 2009 |
related to the pension plan:
Bonny Corp. had no beginning balance in its AOCI—net actuarial (gain) loss on January 1, 2008. The actuarial (gains) losses on PBO arose due to changes in assumptions made by the actuaries regarding salary increases (2008) and mortality estimates (2009).
Required:
1. Compute Bonny’s PBO at December 31, 2008 and December 31, 2009.
2. Compute the fair value of plan assets at December 31, 2008 and December 31, 2009.
3. Compute the year-end balance in AOCI—net actuarial loss (gain) for Bonny Corp. for 2008 and 2009.
4. Compute OCI for the years ended December 31, 2008 and December 31, 2009.
Step by Step Answer: