3167820729 - Exercise 17-10 Requirement 1 ($ in 000s)...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Exercise 17-10 Requirement 1 ($ in 000s) Service cost $310 Interest cost (7% x $2,300) 161 Expected return on the plan assets ($216 actual, plus $24 loss) (240) Amortization of prior service cost 25 Amortization of net gain–pensions (6 ) Pension expense $250 * (10% x $2,400) – (9% x $2,400) Requirement 2 Pension expense (calculated above) 250 Amortization of net gain –OCI 6 Amortization of p rior service cost–OCI 25 Pension asset* ($310 + 161 – 240) 231 Pension asset* 245 Cash (given) 245 The amortization amounts are reported as other comprehensive income on the statement of comprehensive income. * Barry has a Pension asset rather than a Pension Liability because the plan is overfunded
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Exercise 17-22 Requirement 1 $50,000 x 3 / 25 = $6,000 EPBO fraction APBO earned Requirement 2 $6,000 (beginning APBO) x 6% = $360 Requirement 3 $53,000 x 1 / 25 = $2,120 EPBO attributed service 2007 to 2007 cost Requirement 4 Postretirement benefit expense ($360 + 2,120). ...... 2,480 Postretirement benefit liability. ....................... 2,480
Background image of page 2
Problem 17-10 Requirement 1 ($ in millions) 2007 2008 Service cost (given) $520 $570 Interest on PBO (2007: 10% x $2,200 * ; 2008: 10% x $2,540 * ) 220 254
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 6

3167820729 - Exercise 17-10 Requirement 1 ($ in 000s)...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online