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 $1,375,500. No benefits have been paid. 8% 10% Compute the amount of accumulated OCI (PSC) to be amortized as a component of net periodic pension expense for each of the years 2025 and 2026. 603,900

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 $1,375,500. No benefits have been paid. 8% 10% Compute the amount of accumulated OCI (PSC) to be amortized as a component of net periodic pension expense for each of the years 2025 and 2026. 603,900

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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