Determining pension expense and AOCI balances
Cummings, Inc. had the following reconciliation at December
Determining pension expense and AOCI balances
| Fair value of plan assets |
$5,000 |
| PBO |
4,200 |
| Funded status |
$800 |
| AOCI-prior service cost $300 |
|
| AOCI-net actuarial (gain) loss |
700 |
| Total |
$1,000 |
The following assumptions are being used for the pension plan in 2009:
| Discount rate |
5% |
| Expected rate of return on assets |
8% |
| Average remaining worklife |
10 years |
| Remaining amortization period for prior services costs |
6 years |
Additional 2009 Information:
| Service cost |
$442 |
| Cash contributed to the plan (year-end) |
250 |
| Pension benefits paid by the plan (year-end) |
465 |
| Actual return on plan assets |
650 |
| New actuarial (gain) loss on the PBO |
64 |
Required:
1. Compute pension expense for 2009.
2. Compute the fair value of plan assets at December 31, 2009.
3. Compute the PBO at December 31, 2009.
4. Compute AOCI-net actuarial (gain) loss as of December 31, 2009.