Shiloh, Inc. has a noncontributory, defined benefit pension plan for its 500 employees. The company's actuary provided the following information: • On January 1, 2025: o Accumulated other comprehensive income (loss) (PSC): $ 210 o Pension plan assets (fair value and market-related asset value): 600 o Projected benefit obligation 860 o Pension asset/liability 260 o The average remaining service period for the participating employees is 10 years. All employees are expected to receive benefits under the plan. • On December 31, 2025, the actuary calculated that o Pension plan assets (fair value and market-related asset value); o Projected benefit obligation o Service costs for 2025 $ 740 996 100 o The expected return on plan assets and the settlement rate were both 10%. o The company's current year's contribution to the pension plan amounted to $80. o Benefits paid during the year were $50.
Shiloh, Inc. has a noncontributory, defined benefit pension plan for its 500 employees. The company's actuary provided the following information: • On January 1, 2025: o Accumulated other comprehensive income (loss) (PSC): $ 210 o Pension plan assets (fair value and market-related asset value): 600 o Projected benefit obligation 860 o Pension asset/liability 260 o The average remaining service period for the participating employees is 10 years. All employees are expected to receive benefits under the plan. • On December 31, 2025, the actuary calculated that o Pension plan assets (fair value and market-related asset value); o Projected benefit obligation o Service costs for 2025 $ 740 996 100 o The expected return on plan assets and the settlement rate were both 10%. o The company's current year's contribution to the pension plan amounted to $80. o Benefits paid during the year were $50.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 6E
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Question
1) compute the actual return on plan asset
2) determine the componets of pension expense that the company would recognize in 2025
3) compute the amount of the 2025 increase/decrease in gains or losses
4) prepare the
Transcribed Image Text:Name:
Shiloh, Inc. has a noncontributory, defined benefit pension plan for its 500 employees. The company's
actuary provided the following information:
On January 1, 2025:
o Accumulated other comprehensive income (loss) (PSC):
$ 210
600
860
260
The average remaining service period for the participating employees is 10 years. All employees
are expected to receive benefits under the plan..
O Pension plan assets (fair value and market-related asset value):
o Projected benefit obligation
o Pension asset/liability
o
● On December 31, 2025, the actuary calculated that
o Pension plan assets (fair value and market-related asset value):
o
Projected benefit obligation
o
Service costs for 2025
$ 740
996
100
o The expected return on plan assets and the settlement rate were both 10%.
o The company's current year's contribution to the pension plan amounted to $80.
o Benefits paid during the year were $50.
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