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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Melanie Vail Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2012, the following balances relate to this plan.
Plan assets - $480,000
Projected benefit obligation - 625,000
Accumulated OCI (PSC) - 100,000 Dr.
As a result of the operation of the plan during 2012, the following additional data are provided by the
actuary.
Service cost for 2012 - $90,000
Settlement rate - 9%
Actual return on plan assets in 2012 - 57,000
Amortization of prior service cost - 19,000
Expected return on plan assets - 52,000
Unexpected loss from change in projected benefit obligation,
due to change in actuarial predictions - 76,000
Contributions in 2012 - 99,000
Benefits paid retirees in 2012 - 85,000
Directions Situation Measurement Journal Entry Disclosure Resources
(a) Use a computer spreadsheet to prepare a pension worksheet. On the pension worksheet, compute
pension expense, pension asset/liability, projected benefit obligation, plan assets, prior
service cost, and net gain or loss.
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