Keeton Company sponsors a defined benefit pension plan for its 600 employees. The company?s actuary provided the

Question:

Keeton Company sponsors a defined benefit pension plan for its 600 employees. The company?s actuary provided the following information about the plan.

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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 $400,000 in 2020 and $475,000 in 2021. The accumulated OCI (PSC) on January 1, 2020, was $1,260,000. No benefits have been paid.

Instructions

(Round to the nearest dollar.)

a. Compute the amount of accumulated OCI (PSC) to be amortized as a component of net periodic pension expense for each of the years 2020 and 2021.

b. Prepare a schedule which reflects the amount of accumulated OCI (G/L) to be amortized as a component of pension expense for 2020 and 2021.

c. Determine the total amount of pension expense to be recognized by Keeton Company in 2020 and 2021.

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Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 978-1119503668

17th edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfiel

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