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ch. 17 p. 8 Herring Wholesale Company has a defined benefit pension plan. On January 1, 2021, the following pension related data were available: Net
ch. 17 p. 8
Herring Wholesale Company has a defined benefit pension plan. On January 1, 2021, the following pension related data were available: Net gain-AOCI Accumulated benefit obligation Projected benefit obligation Fair value of plan assets Average remaining service period of active employees (expected to remain constant for the next several years) ($ in thousands) $372 2,670 2,600 2,200 16years The rate of return on plan assets during 2021 was 7%, although it was expected to be 10%. The actuary revised assumptions regarding the PBO at the end of the year, resulting in a $38,000 decrease in the estimate of that obligation. Required: 1. Calculate any amortization of the net gain that should be included as a component of net pension expense for 2021. 2. Assume the net pension expense for 2021, not including the amortization of the net gain component, is $340,000. What is pension expense for the year? 3. Determine the net loss-AOCI or net gainAOCI as of January 1, 2022. (For all requirements, enter your answers in thousands (i.e. 200,000 should be entered as 200).) ($ in thousands) 1. Amount amortized to 2021 pension expense 2. Pension expense 3. -AOCI, end of 2021 (beg. of 2022)Step by Step Solution
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