Question
The following information is for the pension plan for the employees of Blossom, Inc. 12/31/20 12/31/21 Accumulated benefit obligation $2,920,000 $3,880,000 Projected benefit obligation 3,220,000
The following information is for the pension plan for the employees of Blossom, Inc.
| 12/31/20 | 12/31/21 | |||||
| Accumulated benefit obligation | $2,920,000 | $3,880,000 | ||||
| Projected benefit obligation | 3,220,000 | 4,120,000 | ||||
| Fair value of plan assets | 3,250,000 | 3,750,000 | ||||
| AOCI - Net (gain) or loss | (545,000) | (600,000) | ||||
| Settlement rate | 7% | 7% | ||||
| Expected rate of return | 6% | 5% | ||||
Blossom estimates that the average remaining service life is 15 years. Blossom's contribution was $616,000 in 2021 and benefits paid were $320,000.
(a) Calculate the interest cost for 2021.
| Interest cost for 2021: $ |
b) Calculate the actual return on plan on assets for 2021
(c) Calculate the unexpected gain or loss in 2021
(d) Calculate the corridor for 2018 and the amorazation of the net gain for 2021
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
