Problem - Hicks Cable Company has a defined benefit pension plan. Three alternative possibilities for pension-related data at January 1, 2011, are shown below:
|
($ in 0000s)
|
|
Case 1
|
Case 2
|
Case 3
|
|
Net loss (gain)-AOCI, Jan. 1
|
$320
|
$(330)
|
$260
|
|
2011 loss (gain) on plan assets
|
(11)
|
(8)
|
2
|
|
2011 loss (gain) on PBO
|
(23)
|
16
|
(265)
|
|
Accumulated benefit obligation, Jan. 1
|
(2,950)
|
(2,550)
|
(1,450)
|
|
Projected benefit obligation, Jan. 1
|
(3.310)
|
(2,670)
|
(1,700)
|
|
Fair value of plan assets, Jan. 1
|
2,800
|
2,700
|
1,550
|
|
Average remaining service period of active employees (years)
|
12
|
15
|
10
|
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 2011.
(2) For each independent case, determine the net loss-AOCI or net gain-AOCI as of January 1, 2012.