The funded status of Hilton Paneling Inc.'s defined benefit pension plan and the balances in prior service cost and the net gain–pensions, are given below. ($ in 000s) 2018 2018 Beginning Balances Ending Balances Projected benefit obligation $ 4,000 $ 4,501 Plan assets 4,400 4,791 Funded status 400 290 Prior service cost–AOCI 425 400 Net gain–AOCI 460 395 Retirees were paid $250,000 and the employer contribution to the pension fund was $265,000 at the end of 2018. The expected rate of return on plan assets was 10%, and the actuary’s discount rate is 8%. There were no changes in actuarial estimates and assumptions regarding the PBO. Required: 4. Determine the pension expense of 2018. 5. Average remaining service life of active employees (used to determine amortization of the net gain)
The funded status of Hilton Paneling Inc.'s defined benefit pension plan and the balances in prior service cost and the net gain–pensions, are given below. ($ in 000s) 2018 2018 Beginning Balances Ending Balances Projected benefit obligation $ 4,000 $ 4,501 Plan assets 4,400 4,791 Funded status 400 290 Prior service cost–AOCI 425 400 Net gain–AOCI 460 395 Retirees were paid $250,000 and the employer contribution to the pension fund was $265,000 at the end of 2018. The expected rate of return on plan assets was 10%, and the actuary’s discount rate is 8%. There were no changes in actuarial estimates and assumptions regarding the PBO. Required: 4. Determine the pension expense of 2018. 5. Average remaining service life of active employees (used to determine amortization of the net gain)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 7E
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The funded status of Hilton Paneling Inc.'s defined benefit pension plan and the balances in prior service cost and the net gain–pensions, are given below.
($ in 000s) | |||||||
2018 | 2018 | ||||||
Beginning Balances |
Ending Balances |
||||||
Projected benefit obligation | $ | 4,000 | $ | 4,501 | |||
Plan assets | 4,400 | 4,791 | |||||
Funded status | 400 | 290 | |||||
Prior service cost–AOCI | 425 | 400 | |||||
Net gain–AOCI | 460 | 395 | |||||
Retirees were paid $250,000 and the employer contribution to the pension fund was $265,000 at the end of 2018. The expected
Required:
4. Determine the pension expense of 2018.
5. Average remaining service life of active employees (used to determine amortization of the net gain)
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