Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bramble Company sponsors a defined benefit pension plan for its 600 employees. The companys actuary provided the following information about the plan. January 1, December

Bramble Company sponsors a defined benefit pension plan for its 600 employees. The companys actuary provided the following information about the plan.

January 1,

December 31,

2020

2020

2021

Projected benefit obligation $2,790,000 $3,645,100 $4,183,708
Accumulated benefit obligation 1,890,000 2,427,000 2,899,000
Plan assets (fair value and market-related asset value) 1,710,000 2,909,000 3,756,000
Accumulated net (gain) or loss (for purposes of the corridor calculation) 0 200,000 (25,000 )
Discount rate (current settlement rate) 9 % 8 %
Actual and expected asset return rate 10 % 10 %
Contributions 1,028,000 556,100

The average remaining service life per employee is 10.5 years. The service cost component of net periodic pension expense for employee services rendered amounted to $404,000 in 2020 and $472,000 in 2021. The accumulated OCI (PSC) on January 1, 2020, was $1,365,000. No benefits have been paid.

Prepare a schedule which reflects the amount of accumulated OCI (G/L) to be amortized as a component of pension expense for 2020 and 2021.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Practice Management With Auditing For Coders

Authors: Elsevier

1st Edition

0323482333, 978-0323482332

More Books

Students also viewed these Accounting questions

Question

What magazine and ads did you choose to examine?

Answered: 1 week ago