Determining the amortization of net gain
• LO17–6
Herring Wholesale Company has a defined benefit pension plan. On January 1, 2018, the following pension-related data were available:
($ in thousands) | |
Net gain—AOCI | $ 170 |
Accumulated benefit obligation | 1,170 |
Projected benefit obligation | 1,400 |
Fair value of plan assets | 1,100 |
Average remaining service period of active employees (expected to remain constant for the next several years) | 15 years |
The
Required:
1. Calculate any amortization of the net gain that should be included as a component of net pension expense for 2018.
2. Assume the net pension expense for 2018, not including the amortization of the net gain component, is $325,000. What is pension expense for the year?
3. Determine the net loss—AOCI or net gain—AOCI as of January 1, 2019.
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Chapter 17 Solutions
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- Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT