The accountant for Marlin Corporation has developed the following information for the company's defined-benefit pension plan for 2021: Service cost $2,000,000 Actual return on plan assets 1,100,000 Annual contribution to the plan 820,000 Prior service cost from pension plan amendment in 2019: 2,500,000 Benefits paid to retirees 550,000 Average remaining service life of employees 10 years Interest rate 10% Expected rate of return on plan assets 12% Plan Asset, beginning balance $10,000,000 PBO, beginning balance $9,000,000 The accumulated benefit obligation at December 31, 2021, amounted to $8,500,000. Required: a. Calculate the ending balance of Plan Asset in 2020.
The accountant for Marlin Corporation has developed the following information for the company's defined-benefit pension plan for 2021:
Service cost $2,000,000
Actual return on plan assets 1,100,000
Annual contribution to the plan 820,000
Prior service cost from pension plan amendment in 2019: 2,500,000
Benefits paid to retirees 550,000
Average remaining service life of
employees 10 years
Interest rate 10%
Expected
Plan Asset, beginning balance $10,000,000
PBO, beginning balance $9,000,000
The accumulated benefit obligation at December 31, 2021, amounted to $8,500,000.
Required:
a. Calculate the ending balance of Plan Asset in 2020.
b. Calculate the ending balance of Projected Benefit Obligation in 2021.
c. Calculate the pension expense in 2021.
d. What’s the ending balance of net gain (loss) - AOCI in 2021?
e. What’s the ending balance of prior service cost – AOCI in 2021?
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