The actuary for the pension plan of Gustafson Inc
Advanced TutorThe actuary for the pension plan of Gustafson Inc. calculated the following net gains and losses.
Incurred during the Year | (Gain) or Loss | ||
2014 | $300,000 | ||
2015 | 480,000 | ||
2016 | (210,000) | ||
2017 | (290,000) |
Other information about the company’s pension obligation and plan assets is as follows.
As of January 1, | Projected Benefit | Plan Assets | ||
2014 | $4,000,000 | $2,400,000 | ||
2015 | 4,520,000 | 2,200,000 | ||
2016 | 5,000,000 | 2,600,000 | ||
2017 | 4,240,000 | 3,040,000 |
Gustafson Inc. has a stable labor force of 400 employees who are expected to receive benefits under the plan. The total service-years for all participating employees is 5,600. The beginning balance of accumulated OCI (G/L) is zero on January 1, 2014. The market-related value and the fair value of plan assets are the same for the 4-year period. Use the average remaining service life per employee as the basis for amortization.
Compute the minimum amount of accumulated OCI (G/L) amortized as a component of net periodic pension expense for each of the years 2014, 2015, 2016, and 2017. Apply the “corridor” approach in determining the amount to be amortized each year.(Round answers to 0 decimal places, e.g. 2,500.)
Year | Minimum Amortization of (Gain) Loss | |||||||||||||||
2014 | $ | $ | $ | $ | $ | $ | $ | |||||||||
Service cost | ||||||||||||||||
Interest cost | ||||||||||||||||
Actual return | ||||||||||||||||
Unexpected gain | ||||||||||||||||
Amortization of PSC | ||||||||||||||||
Liability increase | ||||||||||||||||
Contributions | ||||||||||||||||
Benefits | ||||||||||||||||
Journal entry for 2014 | $ | $ | ||||||||||||||
Accumulated OCI, Dec. 31, 2013 | ||||||||||||||||
Balance, December 31, 2014 | $ | $ | $ | $ | $ |
Prepare the journal entry for pension expense for 2014.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Account Titles and Explanation | Debit | Credit |
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List Of Accounts
Accumulated Depreciation |
11 years ago
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262703_11885_1_tm_c_ttsub290515-267131-25.xlsx
