CHAPTER 17 (12.)

Herring Wholesale Company has a defined benefit pension plan. On January 1, 2018, the following pension related data were available:

	($ in 000s)
Net gainAOCI	$390
Accumulated benefit obligation	2,970
Projected benefit obligation	3,000
Fair value of plan assets	2,500
Average remaining service period of active employees (expected to remain constant for the next several years)	15	years

The rate of return on plan assets during 2018 was 9%, although it was expected to be 10%. The actuary revised assumptions regarding the PBO at the end of the year, resulting in a $41,000 decrease in the estimate of that obligation. Required:

3. Determine the net lossAOCI or net gainAOCI as of January 1, 2019.

Answer is complete but not entirely correct. Amount amortized to 2018 pension expense 6 thousand Pension expense thousand 337 -AOCI, end of 2018 (beg. of 2019) Net gain 404 thousand