Hijo Corp. is a publicly accountable entity that operates a defined benefit plan for its employees. Data relating to the pension plan is as follows: Defined benefit obligation (DBO), December 31, 2019 $22,300,000 Plan assets, December 31, 2019 24,500,000 Current service costs (CSC), December 31, 2020 2,200,000 Benefits paid to retirees, December 31, 2020 1,000,000 Actual return on plan assets, December 31, 2020 800,000 DBO, December 31, 2020, per actuary 24,000,000 Yield on high-quality corporate bonds 4% What is the total gain or loss that will flow to the other comprehensive income (OCI) part of the statement of comprehensive income for the year ended December 31, 2020? Question 12 options: a) $572,000 loss b) $180,000 loss c) $212,000 gain d) $392,000 gain
Hijo Corp. is a publicly accountable entity that operates a defined benefit plan for its employees. Data relating to the pension plan is as follows: Defined benefit obligation (DBO), December 31, 2019 $22,300,000 Plan assets, December 31, 2019 24,500,000 Current service costs (CSC), December 31, 2020 2,200,000 Benefits paid to retirees, December 31, 2020 1,000,000 Actual return on plan assets, December 31, 2020 800,000 DBO, December 31, 2020, per actuary 24,000,000 Yield on high-quality corporate bonds 4% What is the total gain or loss that will flow to the other comprehensive income (OCI) part of the statement of comprehensive income for the year ended December 31, 2020? Question 12 options: a) $572,000 loss b) $180,000 loss c) $212,000 gain d) $392,000 gain
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hijo Corp. is a publicly accountable entity that operates a defined benefit plan for its employees. Data relating to the pension plan is as follows:
| Defined benefit obligation (DBO), December 31, 2019 | $22,300,000 |
| Plan assets, December 31, 2019 | 24,500,000 |
| Current service costs (CSC), December 31, 2020 | 2,200,000 |
| Benefits paid to retirees, December 31, 2020 | 1,000,000 |
| Actual return on plan assets, December 31, 2020 | 800,000 |
| DBO, December 31, 2020, per actuary | 24,000,000 |
| Yield on high-quality corporate bonds | 4% |
What is the total gain or loss that will flow to the other comprehensive income (OCI) part of the statement of comprehensive income for the year ended December 31, 2020?
Question 12 options:
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