The funded status of Patel Paneling Incorporated's defined benefit pension plan and the balances in prior service cost and the net gain-pensions, are given below. ($ in thousands ) 2024 Beginning Balances 2024 Ending Balances Projected benefit obligation $ 2,300 $ 2, 501 Plan assets 2,400 2,591 Funded status 100 90 Prior service cost-AOCI 325 300 Net gain- AOCI 330 300 Retirees were paid $270,000, and the employer contribution to the pension fund was $245,000 at the end of 2024. The expected rate of return on plan assets was 10%, and the actuary's discount rate is 7%. There were no changes in actuarial estimates and assumptions regarding the PBO. Required: Determine the actual return on plan assets of

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The funded status of Patel Paneling Incorporated's defined benefit pension plan and the
balances in prior service cost and the net gain-pensions, are given below. ($ in thousands
) 2024 Beginning Balances 2024 Ending Balances Projected benefit obligation $ 2,300 $ 2,501
Plan assets 2,400 2,591 Funded status 100 90 Prior service cost-AOCI 325 300 Net gain-
AOCI 330 300 Retirees were paid $270, 000, and the employer contribution to the pension
fund was $245,000 at the end of 2024. The expected rate of return on plan assets was 10%,
and the actuary's discount rate is 7% . There were no changes in actuarial estimates and
assumptions regarding the PBO. Required: Determine the actual return on plan assets of
2024. Determine the loss or gain on plan assets of 2024. Determine the service cost of 2024.
Determine the pension expense of 2024. Determine the average remaining service life of
active employees (used to determine amortization of the net gain) for 2024. Note: For all
requirements, enter your answers in thousands (i.e. 200, 000 should be entered as 200)
Transcribed Image Text:The funded status of Patel Paneling Incorporated's defined benefit pension plan and the balances in prior service cost and the net gain-pensions, are given below. ($ in thousands ) 2024 Beginning Balances 2024 Ending Balances Projected benefit obligation $ 2,300 $ 2,501 Plan assets 2,400 2,591 Funded status 100 90 Prior service cost-AOCI 325 300 Net gain- AOCI 330 300 Retirees were paid $270, 000, and the employer contribution to the pension fund was $245,000 at the end of 2024. The expected rate of return on plan assets was 10%, and the actuary's discount rate is 7% . There were no changes in actuarial estimates and assumptions regarding the PBO. Required: Determine the actual return on plan assets of 2024. Determine the loss or gain on plan assets of 2024. Determine the service cost of 2024. Determine the pension expense of 2024. Determine the average remaining service life of active employees (used to determine amortization of the net gain) for 2024. Note: For all requirements, enter your answers in thousands (i.e. 200, 000 should be entered as 200)
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