Analyzing Pension Gain/Loss

Spears Company presents the following information related to its pension plan for 2020, before recording pension expense.

Account Balances
Projected Benefit Obligation, Jan. 1, 2020	$240,000 Cr.
Projected Benefit Obligation, Dec. 31, 2020	260,000 Cr.
Accumulated OCIPension Gain/Loss, Jan. 1, 2020	9,600 Cr.
Plan Assets, Jan. 1, 2020	224,000 Dr.
Plan Assets, Dec. 31, 2020	236,000 Dr.

Activity
Actuarial loss on PBO, determined at Dec. 31, 2020	$ 3,360
Contributions to pension fund in 2020	8,000
Benefits paid in 2020	12,000

Other
Average remaining service period of employees, 2020 and 2021	20 years
Expected rate of return	10%

Required

a. Determine the amortization of Accumulated OCIPension Gain/Loss for 2020, using (1) corridor (minimum amortization) and (2) straight-line amortization based on average remaining service period.

Note: Do not use negative signs with your answers.

1. Amortization under the corridor approach, 2020 $Answer 0 2. Amortization under the straight-line method, 2020

$Answer 0

b. Determine the Accumulated OCIPension Gain/Loss balance at January 1, 2021, assuming straight-line amortization.

Note: Use a negative sign to indicate an accumulated loss. Accumulated OCIPension Gain/Loss, Jan. 1, 2021

$Answer

c. Determine the impact on pension expense in 2020 based upon the information provided, assuming straight-line amortization of Accumulated Pension Gain/Loss. What information is missing in order to calculate total pension expense?

Actual return on plan assets	AnswerNot missing or not needed to calculate pension expenseMissing information and needed to calculated pension expense
Amortization of net gain or loss on PBO	AnswerNot missing or not needed to calculate pension expenseMissing information and needed to calculated pension expense
Amortization of prior service costs	AnswerNot missing or not needed to calculate pension expenseMissing information and needed to calculated pension expense
Contributions to fund	AnswerNot missing or not needed to calculate pension expenseMissing information and needed to calculated pension expense
Expected return on plan assets	AnswerNot missing or not needed to calculate pension expenseMissing information and needed to calculated pension expense Correct Mark 1.00 out of 1.00
Interest cost	AnswerNot missing or not needed to calculate pension expenseMissing information and needed to calculated pension expense
Service cost	AnswerNot missing or not needed to calculate pension expenseMissing information and needed to calculated pension expense

d. Determine the amortization of Accumulated OCIPension Gain/Loss for 2021, assuming straight-line amortization. Amortization under the straight-line method, 2021

$Answer