a) Prepare the disclosure for the change in plan obligation and the change in plan assets for the year and determine the ending funded status.

b) Prepare the disclosure for the net period benefit cost (i.e., pension expense) for the period.

c) Describe how you will account for prior service costs (i.e. Prepare the disclosure of Prior Service Cost AOIC). Provide ASC references to support the accounting for the prior service cost. d) Determine the amount of any amortization of gains and losses for the following year. Provide ASC references to support the calculation.

accordance with the provisions of the plan. While the actuaryis responsible for the calculations, it is the accountant's responsibility to ensure that the assumptions, methods, and disclosures comply with generallyaccepted accounting principles. This exercise is designed confirm your understanding of defined benefit pension reporting net periodic benefit cost, including: * The accounting for acquisition of pension plan in a business combination . The components of net periodic benefit cost The components of other comprehensive income The factors that determine the change in the pension obligation during a reporting period . The factors that determine the change in the plan assets during the year . The amounts recognized on the statement of financial position as a net pension asset or liability * The amounts recognized in accumulated other comprehensive income . The accounting for a retroactive plan amendment * Minimum amortization of cumulative actuarial gains and losses This will be accomplished by your completing the required disclosures for the initial acquisition of a subsidiary with a defined benefit pension plan and the accounting for events and changes in the three subsequent years. For each period, you will be provided with information about changes in the plan obligation and asked to determine the funded status, disclosure for the change in the funded status, net periodic benefit cost, other comprehensive income, and accumulated other comprehensive income. Let'sget started. (Round your answers to nearest thousands) Year O On December 31, 2010, Arrieta Incorporated purchases a subsidiary of Sales Unlimited. Sales hasa defined benefit pension plan. The actuary provides you the following information 12/31/2010 (000s) Statement of financial position Benefit obligation Fair value of plan assets Funded status 12/31/2010 Expected impact of plan alignment 2,700 2,600 (100) 360 accordance with the provisions of the plan. While the actuaryis responsible for the calculations, it is the accountant's responsibility to ensure that the assumptions, methods, and disclosures comply with generallyaccepted accounting principles. This exercise is designed confirm your understanding of defined benefit pension reporting net periodic benefit cost, including: * The accounting for acquisition of pension plan in a business combination . The components of net periodic benefit cost The components of other comprehensive income The factors that determine the change in the pension obligation during a reporting period . The factors that determine the change in the plan assets during the year . The amounts recognized on the statement of financial position as a net pension asset or liability * The amounts recognized in accumulated other comprehensive income . The accounting for a retroactive plan amendment * Minimum amortization of cumulative actuarial gains and losses This will be accomplished by your completing the required disclosures for the initial acquisition of a subsidiary with a defined benefit pension plan and the accounting for events and changes in the three subsequent years. For each period, you will be provided with information about changes in the plan obligation and asked to determine the funded status, disclosure for the change in the funded status, net periodic benefit cost, other comprehensive income, and accumulated other comprehensive income. Let'sget started. (Round your answers to nearest thousands) Year O On December 31, 2010, Arrieta Incorporated purchases a subsidiary of Sales Unlimited. Sales hasa defined benefit pension plan. The actuary provides you the following information 12/31/2010 (000s) Statement of financial position Benefit obligation Fair value of plan assets Funded status 12/31/2010 Expected impact of plan alignment 2,700 2,600 (100) 360