Question
Rockwell Corporation received the following information from its actuary concerning the operation of the corporations defined benefit pension plan. Details January 1, 2019 $000 December
Rockwell Corporation received the following information from its actuary concerning the operation of the corporations defined benefit pension plan.
Details | January 1, 2019 $000 | December 31, 2019 $000 |
Vested benefit obligation | 1500 | 1900 |
Accumulated benefit obligation | 1900 | 2730 |
Defined benefit obligation | 3600 | 4700 |
Plan assets (fair value) | 2320 | 3500 |
Discount (Interest) rate | 0 | 10% |
Pension asset/liability | 1280 | ? |
Service cost for the year 2019 | 0 | 590 |
Contributions (funding in 2019) | 0 | 980 |
Benefits paid in 2019 | 0 | 310 |
Instructions
2.Compute the amount of the other comprehensive income (G/L)as of December 31, 2019. (Clearly show the computation for pension liability gains/losses and asset gains/losses) (Assume the January 1, 2019, balance was zero.) (6 marks)
3.Prepare a 2019 pension worksheet with supplementary schedules. (5 marks)
5Indicate the amounts that would be reported on the Income Statement and the Statement of Financial Position for the year 2019. (3 marks)
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