he Corporation has developed the following information (photo attached) for the company's defined benefit pension for 2020: Service cost $1,000,000 Actual return on plan assets 500,000 Annual contribution to the plan 1,840,000 Prior service cost from pension plan amendment in 2019: 2,500,000 Benefits paid to retirees 120,000 Average remaining service life of employees 10 years Interest rate 10% Expected rate of return on plan assets 8% Plan Asset, beginning balance $5,500,000 PBO, beginning balance $8,000,000 The accumulated benefit obligation at December 31, 2020, amounted to $6,500,000. Plan Assets, closing balance: 7,720,000 Planned Benefit obligation, beginning balance: 10,720,000 Required: 1. Calculate the pension expense in 2020 2. What's the ending balance of net gain (loss) - AOCI in 2020 3. What's the ending balance of prior service cost - AOCI in 2020 Clarification question: Is "plan assets, closing balance" the same as "ending balance of plan asset in 2020" & is "planned benefit obligation, beginning balance" the same as "ending balance of projected benefit obligation in 2020" ? Thank you.
he Corporation has developed the following information (photo attached) for the company's defined benefit pension for 2020:
Service cost $1,000,000
Actual return on plan assets 500,000
Annual contribution to the plan 1,840,000
Prior service cost from pension plan amendment in 2019: 2,500,000
Benefits paid to retirees 120,000
Average remaining service life of employees 10 years
Interest rate 10%
Expected
Plan Asset, beginning balance $5,500,000
PBO, beginning balance $8,000,000
The accumulated benefit obligation at December 31, 2020, amounted to $6,500,000.
Plan Assets, closing balance: 7,720,000
Planned Benefit obligation, beginning balance: 10,720,000
Required:
1. Calculate the pension expense in 2020
2. What's the ending balance of net gain (loss) - AOCI in 2020
3. What's the ending balance of prior service cost - AOCI in 2020
Clarification question: Is "plan assets, closing balance" the same as "ending balance of plan asset in 2020" & is "planned benefit obligation, beginning balance" the same as "ending balance of projected benefit obligation in 2020" ? Thank you.
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