Class_11_Solns - EXERCISE 20-9 (a) Note to financial...

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(a) Note to financial statements disclosing components of 2011 pension expense: Note X : Net pension expense for 2011 is composed of the following components of pension cost: Service cost. .................................................... $ 94,000 Interest cost. .................................................... 253,000 Expected return on plan assets. .................... (175,680) Prior service cost amortization. .................... 45,000 Pension expense. ..................................... $216,320 (b) Comprehensive income, 2011 Amortization of prior service cost. ............... $ (45,000) Actuarial loss. .................................................. 45,680 Other comprehensive loss. ............................ $ 680 Comprehensive income, 2011 Net income. ...................................................... $ 35,000 Other comprehensive loss. ............................ 680 Comprehensive income. ................................ $ 34,320 (c) Accumulated OCI at December 31, 2011 is $250,680; this amount is comprised of the following: PSC Gain/Loss Balance Jan. 1, 2011* $250,000 Dr. $ 0 Amortization of PSC 45,000 Cr. Actuarial loss 45,680 Dr. Balance Dec. 31, 2011 $205,000 Dr. $45,680 Dr. *$205,000 + ?
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This note was uploaded on 10/14/2009 for the course MGMT 351 taught by Professor Staff during the Spring '08 term at Purdue University.

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Class_11_Solns - EXERCISE 20-9 (a) Note to financial...

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