Question
Beginning of year PBO and assets were $800,000 and $600,000 respectively, and the average remaining service period of plan participants was 15 years. The pension
Beginning of year PBO and assets were $800,000 and $600,000 respectively, and the average remaining service period of plan participants was 15 years. The pension gain/loss-OCI account balance at the beginning of the year was $120,000 cr. (gain). The firm uses corridor (minimum) amortization. By what amount is OCI for the year reduced by recognition of component 5 of pension expense?
a. 2,667 | ||||||||||||||||||||||||||||||||||||||||||||
b. 3,000 | ||||||||||||||||||||||||||||||||||||||||||||
c. 4,000 | ||||||||||||||||||||||||||||||||||||||||||||
d. 8,000 | ||||||||||||||||||||||||||||||||||||||||||||
e. 120,000
The pension gain/loss-OCI account balance at 1/1/x3 is $30,000 dr. (loss). At 12/31/x3 the actuary informed the sponsoring firm that PBO had increased $40,000 as a result of an estimate change. Expected return on assets for 20x3 exceeded actual return by $20,000. Component 5 of pension expense for 20x3 was $5,000. What is the 1/1/x4 balance of the pension gain/loss-OCI account?
Which of the following is not a voluntary accounting change?
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