2. ABC, Inc. has the following information related to the pension plan. Beginning of the Year 2025 2026 $2,100,000 $2,600,000 2,600,000 2,800,000 Projected benefit obligation Market-related asset value 2027 $2,900,000 2,700,000 ABC recorded in Other Comprehensive Income actuarial gains of $400,000 in 2025 and $300,000 in 2026. ABC has losses of $400,000 at the beginning of 2025. Assume the average remaining service lives for all employees is 5.5 years. What minimum amount of amortization will ABC record in 2025, 2026, and 2027 and what is the impact on the pension expense for 2027?
2. ABC, Inc. has the following information related to the pension plan. Beginning of the Year 2025 2026 $2,100,000 $2,600,000 2,600,000 2,800,000 Projected benefit obligation Market-related asset value 2027 $2,900,000 2,700,000 ABC recorded in Other Comprehensive Income actuarial gains of $400,000 in 2025 and $300,000 in 2026. ABC has losses of $400,000 at the beginning of 2025. Assume the average remaining service lives for all employees is 5.5 years. What minimum amount of amortization will ABC record in 2025, 2026, and 2027 and what is the impact on the pension expense for 2027?
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 6MC
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