Information for the Crane Company pension plan in 2026 is as follows:Service cost is $67000Settlement rate is 10% expected rate of return is 10%Actual return on plan assets is $170000There are no prior service costs to amortizeAnnual funding contribution is $92000Benefits paid to retirees during the year are 574000Average service life of all covered employees is 15 yearsThe projected benefit obligation on January 1, 2026 was $1120000The value of plan assets on January 1 2026 was $920000The balance in Other Comprehensive Income-Gains/Losses is a $155000 credit onDecember 31,2025.What is the amount of amortization of the other comprehensive income gain or loss in 20267$9200$2867C$112000$3800

Part 2: Explanation:Step 1: Calculate the actual return on plan assets:Actual return on plan assets…

Answered: Information for the Crane Company…

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 7RE

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Similar questions

Given the following information for Tyler Companys pension plan at the beginning of the year, calculate the corridor, excess net loss (gain), and amortized net loss (gain). Assume an average remaining service life of 15 years.
Pinecone Company has plan assets of 500,000 at the beginning of the current year and expects to earn 12% on its plan assets during the year. Pinecones service cost is 230,000, and its interest cost is 55,000. Compute Pine-cones pension expense for the current year.
Wildhorse Company provides the following information about it defined benefit pension plan for the year 2025. Service cost $89, 200 Contribution to the plan amortization 10,300 Actual and expected return on plan assets 64, 100 Benefits paid 40, 100 Plan assets at January 1, 2025 632, 500 Projected benefit obligation at January 1, 2025 702,600 Accumulated OCI (PSC) at January 1, 2025 151,200 Interest/discount (settlement) rate 11% Compute the pension expense for the year 2025
Information for the Wildhorse Company pension plan in 2026 is as follows: ● Service cost is $87000 Settlement rate is 10%, expected rate of return is 10% Actual return on plan assets is $370000. There are no prior service costs to amortize ● Annual funding contribution is $112000● Benefits paid to retirees during the year are $92000 ● Average service life of all covered employees is 15 years. The projected benefit obligation on January 1, 2026 was $1320000● The value of plan assets on January 1, 2026 was $1120000● The balance in Other Comprehensive Income - Gains/Losses is a $355000 credit on December 31, 2025. What is the unexpected gain or loss for 2026? Select answer from the options below $258000 unexpected gain $258000 unexpected loss $40000 unexpected gain $40000 unexpected loss
Sunland Company provides the following information about its defined benefit pension plan for the year 2025. Service cost $91,400 Contribution to the plan 102,900 Prior service cost amortization 9,600 Actual and expected return on plan assets 64,900 Benefits paid 40,600 Plan assets at January 1, 2025 632,300 Projected benefit obligation at January 1, 2025 686,100 Accumulated OCI (PSC) at January 1, 2025 147,300 Interest/discount (settlement) rate 11% Compute the pension expense for the year 2025. Pension expense for 2025 :$__?__
Current Attempt in Progress Information for the Blossom Company pension plan in 2026 is as follows: Service cost is $66000 Settlement rate is 10%, expected rate of return is 10% Actual return on plan assets is $160000 There are no prior service costs to amortize Annual funding contribution is $91000 Benefits paid to retirees during the year are $72000 Average service life of all covered employees is 15 years The projected benefit obligation on January 1, 2026 was $1110000 The value of plan assets on January 1, 2026 was $910000 The balance in Other Comprehensive Income- Gains/Losses is a $145000 credit on December 31, 2025. What is the balance of plan assets on December 31, 2026? O $1089000 O $1030000 O $910000 O $1051000
Sandhill Company provides the following information about its defined benefit pension plan for the year 2025. Service cost Contribution to the plan $91,600 104,400 Prior service cost amortization 10,800 Actual and expected return on plan assets 64,600 Benefits paid 40,300 Plan assets at January 1, 2025 650,000 Projected benefit obligation at January 1, 2025 692,000 Accumulated OCI (PSC) at January 1, 2025 150,000 Interest/discount (settlement) rate 11% (a) Prepare a pension worksheet inserting January 1, 2025, balances, showing December 31, 2025. (Enter all amounts as positive.
The following information is available for the pension plan of Carla Vista Company for the year 2025. Actual and expected return on plan assets Benefits paid to retirees Contributions (funding) Interest/discount rate Prior service cost amortization Projected benefit obligation, January 1, 2025 Service cost (a) Compute pension expense for the year 2025. $13,800 40,000 91,300 9% 8,200 496,000 65,400
Sunland Company provides the following information about its defined benefit pension plan for the year 2025. Service cost Contribution to the plan $90,100 104,900 Prior service cost amortization 10,800 Actual and expected return on plan assets 63,000 Benefits paid 40,700 Plan assets at January 1, 2025 643,200 Projected benefit obligation at January 1, 2025 690,100 Accumulated OCI (PSC) at January 1, 2025 150,500 Interest/discount (settlement) rate 10% (a) Prepare a pension worksheet inserting January 1, 2025, balances, showing December 31, 2025. (Enter all amounts as positive.)
The following information is available for the pension plan of Cullumber Company for the year 2025. Actual and expected return on plan assets Benefits paid to retirees Contributions (funding) Interest/discount rate Prior service cost amortization Projected benefit obligation, January 1, 2025 Service cost (a) Compute pension expense for the year 2025. Pension expense for 2025 $15,500 38,300 88,400 9% 8,500 550,000 61,100
Sunland Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets. Projected Benefit Obligation 2024 $2,160,000 $2,052,000 2025 2,592,000 2,700,000 2026 2,808,000 3,240,000 2027 Year The average remaining service life per employee in 2024 and 2025 is 10 years; and in 2026 and 2027, is 12 years. The net gain or loss that occurred during each year is as follows: 2024, $302,400 loss; 2025, $97,200 loss; 2026, $11,880 loss; and 2027, $27,000 gain. (In working the solution, the gains and losses must be aggregated to arrive at year-end balances.) 2024 Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the four years, setting up an appropriate schedule. (Do not leave any answer field blank. Enter O for amounts.) Minimum Amortization of Loss 2025 3,186,000 2026 3,888,000 2027 Plan Assets Value 100
The following information is available for the pension plan of Carla Vista Company for the year 2025. Actual and expected return on plan assets Benefits paid to retirees Contributions (funding) Interest/discount rate Prior service cost amortization Projected benefit obligation, January 1, 2025 Service cost (a) Compute pension expense for the Pension expense for 2025 $ year 2025. $14,900 42,000 83,300 9% 7,700 511,000 55,100

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