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Determine the amounts of the components of penaion expense that should be recognized by the company in 2020, (Enter omounts that reduce pension expense with either a negative sign preceding the number eg. -45 or parenthesis e.s (45) Components of Pension Expense

Determine the amounts of the components of penaion expense that should be recognized by the company in 2020, (Enter omounts that reduce pension expense with either a negative sign preceding the number eg. -45 or parenthesis e.s (45) Components of Pension Expense

Intermediate Accounting: Reporting And Analysis
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 7E
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Sarasota Company received the following selected information from its pension plan trustee concerning the operation of the company's defined benefit penslon plan for the year ended December 31. 2020. January 1, 2020 December 31, 2020 Projected benefit obligation $1.514.000 $1.542.000 Market-related and fair value of planassets 805.000 1138,500 Accumulated beneft obligation 1,625,000 1,747,400 Accumulated OCI (G/L)-Net gain (201.400 ) The service cost component of pension expense for employee services rendered in the current year amounted to $78,000 and the amortization of prior service.cost was $122,400. The company's actual funding (contributions) of the planin 2020 amounted to $253,000. The expected return on plan assets and the actual rate were both 10%, the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of S1.224,000 on January 1. 2020. Assume no benefits paid in 2020. (a) Determine the amounts of the components of pension expense that should be recognized by the company in 2020, (Enter omounts that reduce pension expense with either a negative sign preceding the number eg. -45 or parenthesis es.(45)) Components of Pension Expense
Transcribed Image Text:Sarasota Company received the following selected information from its pension plan trustee concerning the operation of the company's defined benefit penslon plan for the year ended December 31. 2020. January 1, 2020 December 31, 2020 Projected benefit obligation $1.514.000 $1.542.000 Market-related and fair value of planassets 805.000 1138,500 Accumulated beneft obligation 1,625,000 1,747,400 Accumulated OCI (G/L)-Net gain (201.400 ) The service cost component of pension expense for employee services rendered in the current year amounted to $78,000 and the amortization of prior service.cost was $122,400. The company's actual funding (contributions) of the planin 2020 amounted to $253,000. The expected return on plan assets and the actual rate were both 10%, the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of S1.224,000 on January 1. 2020. Assume no benefits paid in 2020. (a) Determine the amounts of the components of pension expense that should be recognized by the company in 2020, (Enter omounts that reduce pension expense with either a negative sign preceding the number eg. -45 or parenthesis es.(45)) Components of Pension Expense
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