Question
Hall of Fame Co. has a defined benefit pension plan. Two alternative possibilities for pension-related data for the current calendar year are shown below: Case
Hall of Fame Co. has a defined benefit pension plan. Two alternative possibilities for pension-related data for the current calendar year are shown below: |
Case 1 | Case 2 | |||
Net loss (gain), Jan. 1 | $(236,600 | ) | $216,000 | |
Loss (gain) on plan assets | (6,300 | ) | 2,300 | |
Loss (gain) on PBO | 12,300 | (223,000 | ) | |
ABO, Jan. 1 | (1,530,000 | ) | (1,380,000 | ) |
PBO, Jan. 1 | (1,730,000 | ) | (1,630,000 | ) |
Plan assets, Jan.1 | 2,030,000 | 1,480,000 | ||
Average remaining service period of active employees (years) | 12 | 10 | ||
Required: |
1. | For each independent case, calculate amortization of the net loss or gain that should be included as a component of pension expense for the current year. (Input all amounts as positive values.) |
2. | Determine the net loss or gain as of December 31 of the current year. (Amounts to be deducted and loss amounts should be indicated by a minus sign.) |
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