Wildhorse Company sponsors a defined benefit pension plan for its 600 employees. The company's actuary provided the following information about the plan. January 1, December 31, 2025 2025 2026 Projected benefit obligation $2,780,000 $3,622,200 $4,163,976 Accumulated benefit obligation 1,900,000 2,413,000 2,902,000 Plan assets (fair value and market-related asset value) 1,700,000 2,901,000 3,795,000 Accumulated net (gain) or loss (for purposes of the corridor calculation) Discount rate (current settlement rate) Actual and expected asset return rate Contributions 0 196,000 (23,000) 9% 8% 10% 10% 1,031,000 603,900 The average remaining service life per employee is 10.5 years. The service cost component of net periodic pension expense for employee services rendered amounted to $396,000 in 2025 and $471,000 in 2026. The accumulated OCI (PSC) on January 1, 2025, $1.375.500. No benefits have been paid

Wildhorse Company sponsors a defined benefit pension plan for its 600 employees. The company's actuary provided the following information about the plan. January 1, December 31, 2025 2025 2026 Projected benefit obligation $2,780,000 $3,622,200 $4,163,976 Accumulated benefit obligation 1,900,000 2,413,000 2,902,000 Plan assets (fair value and market-related asset value) 1,700,000 2,901,000 3,795,000 Accumulated net (gain) or loss (for purposes of the corridor calculation) Discount rate (current settlement rate) Actual and expected asset return rate Contributions 0 196,000 (23,000) 9% 8% 10% 10% 1,031,000 603,900 The average remaining service life per employee is 10.5 years. The service cost component of net periodic pension expense for employee services rendered amounted to $396,000 in 2025 and $471,000 in 2026. The accumulated OCI (PSC) on January 1, 2025, $1.375.500. No benefits have been paid

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 7E

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Blossom Company sponsors a defined benefit pension plan for its 600 employees. The company’s actuary provided the following information about the plan. January 1, December 31, 2020 2020 2021 Projected benefit obligation $2,780,000 $3,632,200 $4,175,776 Accumulated benefit obligation 1,890,000 2,421,000 2,899,000 Plan assets (fair value and market-related asset value) 1,700,000 2,902,000 3,796,000 Accumulated net (gain) or loss (for purposes of the corridor calculation) 0 200,000 (24,000 ) Discount rate (current settlement rate) 9 % 8 % Actual and expected asset return rate 10 % 10 % Contributions 1,032,000 603,800 The average remaining service life per employee is 10.5 years. The service cost component of net periodic pension expense for employee services rendered amounted to $402,000 in 2020 and $477,000 in 2021. The accumulated OCI (PSC) on January 1, 2020, was $1,438,500. No benefits…
Blossom Company sponsors a defined benefit pension plan for its 600 employees. The company’s actuary provided the following information about the plan. January 1, December 31, 2020 2020 2021 Projected benefit obligation $2,780,000 $3,632,200 $4,175,776 Accumulated benefit obligation 1,890,000 2,421,000 2,899,000 Plan assets (fair value and market-related asset value) 1,700,000 2,902,000 3,796,000 Accumulated net (gain) or loss (for purposes of the corridor calculation) 0 200,000 (24,000 ) Discount rate (current settlement rate) 9 % 8 % Actual and expected asset return rate 10 % 10 % Contributions 1,032,000 603,800 The average remaining service life per employee is 10.5 years. The service cost component of net periodic pension expense for employee services rendered amounted to $402,000 in 2020 and $477,000 in 2021. The accumulated OCI (PSC) on January 1, 2020, was $1,438,500. No benefits…
The following data are for the pension plan for the employees of Cullumber Company. 1/1/21 12/31/21 12/31/22 Accumulated benefit obligation $7350700 $7645600 $9968000 Projected benefit obligation 7998200 8232800 10689500 Market-related asset value 7468400 8350600 9015100 Plan assets (at fair value) 7762800 8824400 9904500 Unrecognized net loss Settlement rate (for year) 0 1453000 1492600 10% 9% Expected rate of return (for year) 9% 8% Cullumber's contribution was $1248800 in 2022 and benefits paid were $1104800. Cullumber estimates that the average remaining service life is 15 years. The actual return on plan assets in 2022 was $752700. The unexpected gain on plan assets in 2022 was O $37904. O $138396. $84652. O $46748.
Blossom Company sponsors a defined benefit pension plan for its 600 employees. The company’s actuary provided the following information about the plan. January 1, December 31, 2020 2020 2021 Projected benefit obligation $2,780,000 $3,632,200 $4,175,776 Accumulated benefit obligation 1,890,000 2,421,000 2,899,000 Plan assets (fair value and market-related asset value) 1,700,000 2,902,000 3,796,000 Accumulated net (gain) or loss (for purposes of the corridor calculation) 0 200,000 (24,000 ) Discount rate (current settlement rate) 9 % 8 % Actual and expected asset return rate 10 % 10 % Contributions 1,032,000 603,800 The average remaining service life per employee is 10.5 years. The service cost component of net periodic pension expense for employee services rendered amounted to $402,000 in 2020 and $477,000 in 2021. The accumulated OCI (PSC) on January 1, 2020, was $1,438,500. No benefits…
Wildhorse Company sponsors a defined benefit pension plan for its 600 employees. The company's actuary provided the following information about the plan. Projected benefit obligation Accumulated benefit obligation Plan assets (fair value and market-related asset value) Accumulated net (gain) or loss (for purposes of the corridor calculation) Discount rate (current settlement rate) Actual and expected asset return rate Contributions January 1, (a) 2025 $2,780,000 1,900,000 1,700,000 0 Amount of accumulated OCI (PSC) to be amortized for the year 2025 December 31, 2025 $3,622,200 $4,163,976 2,413,000 2,901,000 $ 196,000 Amount of accumulated OCI (PSC) to be amortized for the year 2026 $ 9% 1,031,000 10% 2026 2,902,000 3,795,000 (23,000) The average remaining service life per employee is 10.5 years. The service cost component of net periodic pension expense for employee services rendered amounted to $396,000 in 2025 and $471,000 in 2026. The accumulated OCI (PSC) on January 1, 2025, was…
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