Question
Sunland Company sponsors a defined benefit pension plan. The corporations actuary provides the following information about the plan. January 1, 2025 December 31, 2025 Vested
Sunland Company sponsors a defined benefit pension plan. The corporations actuary provides the following information about the plan.
January 1, 2025 | December 31, 2025 | |||
---|---|---|---|---|
Vested benefit obligation | $1,650 | $1,950 | ||
Accumulated benefit obligation | 1,950 | 2,800 | ||
Projected benefit obligation | 2,270 | 3,460 | ||
Plan assets (fair value) | 1,790 | 2,710 | ||
Settlement rate and expected rate of return | 10% | |||
Pension asset/liability | 480 | ? |
Service cost for the year 2025 | $430 | |
Contributions (funding in 2025) | 650 | |
Benefits paid in 2025 | 180 |
Compute the actual return on the plan assets in 2025.
Actual return on the plan assets : $450 |
Compute the amount of the other comprehensive income (G/L) as of December 31, 2025. (Assume the January 1, 2025, balance was zero.) (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Net pension liability gains and losses | $442 |
Compute the amount of net gain or loss amortization for 2025 (corridor approach). (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any answer field blank. Enter 0 for amounts.)
Net gain or loss amortization | $enter the net gain or loss amortization in dollars |
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