10.) Calculate the total prior service cost using the following information. Write your answer on the cover sheet. $ FACTS: The company has a defined benefit plan Seth's salary at the end of 2017 Retirement expected after Retirement period is expected to be Interest Rate 145,000 45 20 4.0% years of service years Benefits are calculated as a formula as the product of: Service already provided Percentage Final year's salary is projected to be 15 years 2.0% $ 263,000 AFTER THE PLAN IS INITALLY ADOPTED A CHANGE IS MADE TO THE BENEFITS CALCULATION AS FOLLOWS: Percentage of service yrs. & salary Change made at the beginning of 2.5% 2017 Changed from 2.0% previously USE THE FOLLOWING INFORMATION FOR # 11 - 20: Interest (Cost) Rate Expected rate of return on plan assets Actual rate of return on plan assets Beginning of year balance in CASH 5% 150,000 $ Projected benefit obligation at the beginning of 2017 Service cost, 2017 $ 441,000 $ 42,600 $ 4,200 S (60,000) Loss (gain) on PBO for assumption changes Less: Benefits paid to retirees during the year Plan assets at the beginning of the year Cash contributions to the pension plan in 2017 Less: Benefits paid to retirees during the year S 354,000 $ 52,800 $ (60,000) Additional information reported from the actuary and plan trustee: S $ Prior Service Costs incurred beginning of 2016 Beginning of year balance in AOCI for Net Loss Average remaining service years of employees Beginning of year balance in AOCI for PSC 39,000 52,500 7 years 34,140 $ Pernice cost 11.) Calculate the 2017 Interest cost and write the answer on the cover sheet. 12.) Calculate the 2017 expected return on plan assets and write the answer on the cover sheet. 13.) Calculate the 2017 actual return on plan assets and write the answer on the cover sheet. 14.) Calculate the 2017 adjustment for gain or loss and write the answer on the cover sheet. 15.) Calculate the 2017 amortization of Prior Service Cost and write the answer on the cover sheet. 16.) Calculate the 2017 amortization of the net loss and write the answer on the cover sheet. 17.) A loss on assumption changes has what impact on regular net income? Increase, decrease OR no impact. Write the answer in on the cover sheet. * 18.) What amount should be debited to pension expense for 2017? Write the answer on the cover sheet. 19.) What is the amount of the increase or decrease in the net pension liability for 2017? Write the amount and whether it is an increase or a decrease on the cover sheet. Pension Asset or Liability