Question
A partially completed pension spreadsheet showing the relationships among the elements that comprise the defined benefit pension plan of Universal Products is given below. The
A partially completed pension spreadsheet showing the relationships among the elements that comprise the defined benefit pension plan of Universal Products is given below. The actuary's discount rate is 5%. At the end of 2014, the pension formula was amended, creating a prior service cost of $280,000. The expected rate of return on assets was 8%, and the average remaining service life of the active employee group is 20 years in the current year as well as the previous two years. Required: Fill in the missing amounts. (Negative amounts should be indicated by a minus sign. Enter your answers in thousands (i.e., 200,000 should be entered as 200).)
$ IN 000'S | PBO | PLAN ASSETS | PRIOR SERVICE COST AOCI | NET LOSS AOCI | PENSION EXP | CASH | NET PENSION LIABILITY/ASSET
|
balance 1/1/16 | -1040 | 780 | 266 | 104 | -260 | ||
service cost | -124 | 124 | |||||
interest cost 5% | -52 | 52 | |||||
exp return on assets | -60 | ||||||
adjust for: | |||||||
loss on assets | -26 | 26 | |||||
Amortization: | |||||||
Prior service cost | |||||||
Amortization: | |||||||
Net Loss | |||||||
Gain on PBO | 28 | ||||||
Prior svce. cost | |||||||
Cash funding | 108 | -108 | |||||
Retiree Benefits | |||||||
Bal 12/31/16 | 1138 | 862 | 252 | 130 | 116 | -232 | |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started