Accounting- Pensions questions

profileJeannette1990

 

Pensions:

 

Consider the following information as of the beginning of 2012.  The projected benefit obligation or PBO was $135,000, the accumulated gain (loss) in order comprehensive income (OCI) was $20,000 and the average remaining service period of active employees 20 years.

 

 

 

Additional information:

 

Expected return on plan assets is $15%

 

The FMV of plan assets, on Jan. 1, 2012 is $100,000

 

The FMV on Dec. 31, 2012 is $130,000

 

Contribution to pension plan was $14,000

 

Benefits paid to employees was $8,000

 

 

 

Questions:

 

  1. Determine the difference between the actual and expected return on plan assets for 2012.

  2. Determine the amortization of the net gain or loss accumulated in OCI.

  3. Determine the gain or loss recognized as a component of pension cost in 2012.

  4. Determine the accumulated gain or loss that would be carried forward in OCI 2013.

 

 

 

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