The following information pertains to IBN's defined pension plan for 2018: Projected benefit obligation, 1/1/18 $3,625,000 Plan assets, 1/1/18 3,262,500 Settlement rate (discount rate) 4.5%
The following information pertains to IBN's defined pension plan for 2018:
| Projected benefit obligation, 1/1/18 | $3,625,000 |
| Plan assets, 1/1/18 | 3,262,500 |
| Settlement rate (discount rate) | 4.5% |
| Service cost, December 31, 2018 | 652,500 |
| Plan amendment for prior service cost, December 31, 2018 | 725,000 |
| Actuarial (gain) or loss, December 31, 2018 | 181,250 |
| Employer Pension Contributions, December 31, 2018 | 543,750 |
| Expected rate of return on plan assets | 10% |
| Actual return on plan assets, December 31, 2018 | 261,000 |
| Benefits paid to retirees, December 31, 2018 | 435,000 |
| AOCI-Prior Service Cost, 1/1, 2018 | 424,125 |
| AOCI-Actuarial (Gain)/Loss 1/1, 2018 | (253,750) |
| Prior service cost amortization for 2018 | 120,000 |
| Actuarial (Gain)/Loss amortization for 2018 | 140,000 |
(a) What is the amount of pension expense for IBN in 2018?
(b) What is the ending balance of plan assets for IBN on December 31, 2018?
(c) What is the ending balance of Projected Benefit Obligation for IBN on December 31, 2018?
(d) What is the ending balance of AOCI-Prior Service Cost for IBN on December 31, 2018?
(e) What is the ending balance of AOCI-Actuarial Gain/Loss for IBN on December 31, 2018?
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Authors: Robert T McGee
1st Edition
1137428394, 978-1137428394
