Hicks Cable Company has a defined benefit pension plan. Three alternative possibilities for pension-related data at January 1, 2024, are shown below: Case 1 Net loss (gain)-AOCI, January 1 $ 324 ($ in thousands) Case 2 $ (340) Case 3 270 2024 loss (gain) on plan assets (15) 2024 loss (gain) on PBO (12) 6 (27) Projected benefit obligation, January 1 Accumulated benefit obligation, January 1 20 (275) (2,990) (2,590) (1,490) Fair value of plan assets, January 1 Average remaining service period of active employees (years) (3,350) (2,710) (1,740) 2,840 2,740 1,590 10 11 8 Required: 1. For each independent case, calculate any amortization of the net loss or gain that should be included as a component of pension expense for 2024. 2. For each independent case, determine the net loss-AOCI or net gain-AOCI as of January 1, 2025. Complete this question by entering your answers in the tabs below. Required 1 Required 2 For each independent case, calculate any amortization of the net loss or gain that should be included as a component of pension expense for 2024. Note: Enter your answer in thousands (i.e., 10,000 should be entered as 10). ($ in thousands) Case 1 Case 2 Case 3 $ 324 $ 340 $ 270 Net gain or loss Less: Corridor amount Excess, if any $ 324 $ 340 $ 270 Service period (years)
Hicks Cable Company has a defined benefit pension plan. Three alternative possibilities for pension-related data at January 1, 2024, are shown below: Case 1 Net loss (gain)-AOCI, January 1 $ 324 ($ in thousands) Case 2 $ (340) Case 3 270 2024 loss (gain) on plan assets (15) 2024 loss (gain) on PBO (12) 6 (27) Projected benefit obligation, January 1 Accumulated benefit obligation, January 1 20 (275) (2,990) (2,590) (1,490) Fair value of plan assets, January 1 Average remaining service period of active employees (years) (3,350) (2,710) (1,740) 2,840 2,740 1,590 10 11 8 Required: 1. For each independent case, calculate any amortization of the net loss or gain that should be included as a component of pension expense for 2024. 2. For each independent case, determine the net loss-AOCI or net gain-AOCI as of January 1, 2025. Complete this question by entering your answers in the tabs below. Required 1 Required 2 For each independent case, calculate any amortization of the net loss or gain that should be included as a component of pension expense for 2024. Note: Enter your answer in thousands (i.e., 10,000 should be entered as 10). ($ in thousands) Case 1 Case 2 Case 3 $ 324 $ 340 $ 270 Net gain or loss Less: Corridor amount Excess, if any $ 324 $ 340 $ 270 Service period (years)
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 4E
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Question
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Transcribed Image Text:Hicks Cable Company has a defined benefit pension plan. Three alternative possibilities for pension-related data at January 1, 2024,
are shown below:
Case 1
Net loss (gain)-AOCI, January 1
$ 324
($ in thousands)
Case 2
$ (340)
Case 3
270
2024 loss (gain) on plan assets
(15)
2024 loss (gain) on PBO
(12)
6
(27)
Projected benefit obligation, January 1
Accumulated benefit obligation, January 1
20
(275)
(2,990)
(2,590)
(1,490)
Fair value of plan assets, January 1
Average remaining service period of active
employees (years)
(3,350)
(2,710)
(1,740)
2,840
2,740
1,590
10
11
8
Required:
1. For each independent case, calculate any amortization of the net loss or gain that should be included as a component of pension
expense for 2024.
2. For each independent case, determine the net loss-AOCI or net gain-AOCI as of January 1, 2025.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
For each independent case, calculate any amortization of the net loss or gain that should be included as a component of
pension expense for 2024.
Note: Enter your answer in thousands (i.e., 10,000 should be entered as 10).
($ in thousands)
Case 1
Case 2
Case 3
$
324
$
340
$
270
Net gain or loss
Less: Corridor amount
Excess, if any
$
324
$
340
$
270
Service period (years)
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