Hicks Cable Company has a defined benefit pension plan. Three alternative possib

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Hicks Cable Company has a defined benefit pension plan. Three alternative possibilities for pension-related data at January 1, 2016, are shown below:

Hicks Cable Company has a defined benefit pension plan. Three alternative possibilities for pension-related data at January 1, 2016, are shown below (S in 000's) Case 1 Case 2 Case 3 $ 336S (394) S 277 Net loss (gain)-AOCI, Jan. 1 2016 loss (gain) on plan assets 2016 loss (gain) on PBO Accumulated benefit obligation, Jan. 1 (3,110) (2,710 (1,610) Projected benefit obligation, Jan. 1 Fair value of plan assets, Jan. 1 Average remaining service period (27) (39) (24) 32 6 (281) (3,470) (2,830) 1,860) 2,960 2,860 1,710 of active employees (years) 10 12 7 Required 1. For each independent case, calculate any amortization of the net loss or gain that should be included as a component of pension expense for 2016. (Input all amounts as positive values.) S in 000's) Case 1 Case 2 Case 3 336 394 Net gain or loss Less: Corridor amount Excess, if any Service period (years) Amortization of gain or loss 277 2. For each independent case, determine the net loss-AOCl or net gain-AOCI as of January 1, 2017. (Amounts to be deducted and losses amounts should be indicated by a minus sign.) S in 000's) Case 2 336$ (394)$ Case 1 Case 3 Net loss (gain) Loss (gain) on plan assets 277

Explanation / Answer

Particulars Case1 Case2 Case3 Net loss or gain 336 394 277 less:10% corridor 347 286 186 Excess 0 108 91 Service period 10 12 7 Amortization 0 9 13 10% corridor ,10% times of projected benefit obligation or plan asset(beginning), which ever is larger Projected benefit obliagtion or plan assets Choose larger 10% of larger 3470 or 2960 3470 347 2830 or 2860 2860 286 1860 or 1710 1860 186 Particulars case1 case2 case3 january1,2016 net loss or( gain) 336 -394 277 2016 loss ( gain) on plan assets -27 -24 6 2016 amortization -9 -13 2016 loss ( gain) on PBO -39 32 -281 january1,2017 net loss or ( gain) 270 -395 -11

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