Question
Herring Wholesale Company has a defined benefit pension plan. On January 1, 2018, the following pension related data were available: ($ in 000s) Net gainAOCI
Herring Wholesale Company has a defined benefit pension plan. On January 1, 2018, the following pension related data were available:
($ in 000s) | ||
Net gainAOCI | $350 | |
Accumulated benefit obligation | 2,770 | |
Projected benefit obligation | 2,600 | |
Fair value of plan assets | 2,300 | |
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 8%, although it was expected to be 10%. The actuary revised assumptions regarding the PBO at the end of the year, resulting in a $39,000 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 2018. 2. Assume the net pension expense for 2018, not including the amortization of the net gain component, is $341,000. What is pension expense for the year? 3. Determine the net lossAOCI or net gainAOCI as of January 1, 2019
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