Cullumber Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2025 and 2026. Plan assets (fair value), December 31 Projected benefit obligation, January 1 Pension asset/liability, January 1 Prior service cost, January 1 Service cost Actual and expected return on plan assets Amortization of prior service cost Contributions (funding) Accumulated benefit obligation, December 31 Interest/settlement rate No benefits were paid in 2025 or 2026. 2025 $873,750 875,000 175,000 Cr. 312,500 75,000 30,000 12,500 143,750 625,000 9% 2026 $1,061,250 1,000,000 ? 300,000 112,500 37,500 15,000 150,000 687,500 9%
Cullumber Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2025 and 2026. Plan assets (fair value), December 31 Projected benefit obligation, January 1 Pension asset/liability, January 1 Prior service cost, January 1 Service cost Actual and expected return on plan assets Amortization of prior service cost Contributions (funding) Accumulated benefit obligation, December 31 Interest/settlement rate No benefits were paid in 2025 or 2026. 2025 $873,750 875,000 175,000 Cr. 312,500 75,000 30,000 12,500 143,750 625,000 9% 2026 $1,061,250 1,000,000 ? 300,000 112,500 37,500 15,000 150,000 687,500 9%
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 6E
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![Cullumber Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for
2025 and 2026.
Plan assets (fair value), December 31
Projected benefit obligation, January 1
Pension asset/liability, January 1
Prior service cost, January 1
Service cost
Actual and expected return on plan assets
Amortization of prior service cost
Contributions (funding)
Accumulated benefit obligation, December 31
Interest/settlement rate
No benefits were paid in 2025 or 2026.
(a)
Compute pension expense for 2025 and 2026.
Pension expense for 2025
Pension expense for 2026
$
$
2025
$873,750
875,000
175,000 Cr.
312,500
75,000
30,000
12,500
143,750
625,000
9%
2026
$1,061,250
1,000,000
?
300,000
112,500
37,500
15,000
150,000
687,500
9%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6837f41f-646e-47ee-b8d9-c59c1d1a11b6%2Fb997d632-241b-430d-8219-480727f7890b%2Fsqfwzu_processed.png&w=3840&q=75)
Transcribed Image Text:Cullumber Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for
2025 and 2026.
Plan assets (fair value), December 31
Projected benefit obligation, January 1
Pension asset/liability, January 1
Prior service cost, January 1
Service cost
Actual and expected return on plan assets
Amortization of prior service cost
Contributions (funding)
Accumulated benefit obligation, December 31
Interest/settlement rate
No benefits were paid in 2025 or 2026.
(a)
Compute pension expense for 2025 and 2026.
Pension expense for 2025
Pension expense for 2026
$
$
2025
$873,750
875,000
175,000 Cr.
312,500
75,000
30,000
12,500
143,750
625,000
9%
2026
$1,061,250
1,000,000
?
300,000
112,500
37,500
15,000
150,000
687,500
9%
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