Question
The following information pertains to DD Inc defined benefit pension plan for the year ended December 31, 2024. Beginning balances are as follows: o PBO
The following information pertains to DD Inc defined benefit pension plan for the year ended December 31, 2024.
Beginning balances are as follows:
o PBO - $612,000 Cr.
o Plan Assets - $628,000 Dr.
o OCI G/L - $86,750 Dr.
Service cost for 2024 is $74,500
The settlement rate and expected rate of return are both 7%.
DD Inc contributed $85,000 to the plan during 2024 and benefits of $64,000 were paid to retired workers.
DD Inc recorded $275,000 of prior service cost on 1/1/2021 and decided to amortize the cost using the straight-line method. The PSC originally related to 50 employees and the longest any of these employees are expected to work is 10 years
As of 1/1/2024, the average years of service left for all employees covered by the pension plan is 12 years.
On 12/31/2024, DDs actuary, notified DD that they needed to record an additional $22,000 adjustment for an actuarial loss.
The ending Plan Assets values is $701,500 Dr.
How much amortization of OCI-G/L must DD Incs include in Pension Expense in 2024? Will this amortization result in a debit or credit to OCI-G/L?
What is the unexpected gain or loss on plan assets for 2024?
What is total pension expense for 2024? List each component with relevant amounts with your answer.
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