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Compute the amount of prior service cost that would be amortized as a component of...

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Accounting

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Compute the amount of prior service cost that would be amortized as a component of pension expense for 2017 and 2018.

Hint the answers not 29,200(292,000/10)

Problem 14-2 Determining expense and balance sheet amounts (journal entries) (LO 14-3, LO 14-4, LO 14-6) Turner Inc. provides a defined benefit pension plan to its employees. The company has 150 employees. The remaining amortization period at December 31, 2016, for prior service cost is 5 years. The average remaining service life of employees is 11 years at January 1, 2017, and 10 years at December 31, 2017. The AOCI-net actuarial (gain) loss was zero at December 31, 2016. Turner smooths recognition of its gains and losses when computing its market-related value to compute expected return. Additional Information: December 31 2017 Description PBO ABO Fair value of plan assets Market-related value of plan assets (smoothed recognition) AOCI-prior service cost Balance sheet pension asset (liability) Service cost Contribution PBO actuarial gain Benefit payments made Discount rate Expected rate of returrn 2016 $1,450,000 $1,377,000 1,425,000 1,350,000 1,395,000 1,085,000 1,369,000 1,085,000 292,000 (292,000) 117,400 169,000 113,250 None None 5% 7% 5% 7%

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