Question
Windsor Company sponsors a defined benefit pension plan for its 600 employees. The companys actuary provided the following information about the plan. January 1, December
Windsor Company sponsors a defined benefit pension plan for its 600 employees. The companys actuary provided the following information about the plan.
January 1, | December 31, | ||||||
2020 | 2020 | 2021 | |||||
Projected benefit obligation | $2,810,000 | $3,661,900 | $4,202,852 | ||||
Accumulated benefit obligation | 1,880,000 | 2,413,000 | 2,901,000 | ||||
Plan assets (fair value and market-related asset value) | 1,690,000 | 2,898,000 | 3,799,000 | ||||
Accumulated net (gain) or loss (for purposes of the corridor calculation) | 0 | 198,000 | (24,000 | ) | |||
Discount rate (current settlement rate) | 9 | % | 8 | % | |||
Actual and expected asset return rate | 10 | % | 10 | % | |||
Contributions | 1,039,000 | 611,200 |
The average remaining service life per employee is 10.5 years. The service cost component of net periodic pension expense for employee services rendered amounted to $401,000 in 2020 and $470,000 in 2021. The accumulated OCI (PSC) on January 1, 2020, was $1,333,500. No benefits have been paid.
(a)
Incorrect answer iconYour answer is incorrect.
Compute the amount of accumulated OCI (PSC) to be amortized as a component of net periodic pension expense for each of the years 2020 and 2021.
Amount of accumulated OCI (PSC) to be amortized for the year 2020 | $ | |
Amount of accumulated OCI (PSC) to be amortized for the year 2021 | $ |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started