Question

Gottschalk Company sponsors a defined benefit plan for its 100 employees. On January 1, 2020, the company's actuary provided the following information. Accumulated other comprehensive loss (PSC) $150,000 Pension plan assets (fair value and market-related asset value) 200,000 Accumulated benefit obligation 260,000 Projected benefit obligation 380,000 The average remaining service period for the participating employees is 10 years. All employees are expected to receive benefits under the

Answer 1

Answer:

Pension expenses = $85,000

Explanation:

Missing word: "the plan. On December 31, 2017, the actuary calculated that the present value of future benefits earned for employee services rendered in the current year amounted to $52,000: the projected benefit obligation was $490,000; fair value of pension assets was $276,000: the accumulated benefit obligation amounted to $365,000. The expected return on plan assets and the discount rate on the projected benefit obligation were both 10%. The actual return on plan assets is $11.000. The company's current year's contribution to the pension plan amounted to $65,000. No benefits were paid during the year. Instructions Determine the components of pension expense that the company would recognize in 2017. (With only one year involved, you need not prepare a worksheet.)"

Particulars                                                                Amount

Service cost                                                             $52,000

Interest on projected benefit obligation at 10%    $38,000 (380,000*10%)

Actual return on plan asset                                    ($11,000)

Unexpected loss                                                     ($9,000)

Amortization of gain or loss                                          -

Amortization of prior service cost                           $15,000

Pension Expenses                                                    $85,000