Reference no: EM132958349
Question - You are the assistant controller at Hillside Co. and have gathered the following information related to the company's pension plan for the year 2021:
Plan assets, January 1, 2021 $656,000
Defined benefit obligation, January 1, 2021, $520,000
Discount rate on pension obligation and expected rate of return on plan assets 7.2%
Current service for the year $ 60,000
Benefits paid to retirees - paid evenly over the year $53,600
Contributions to plan assets - made in two equal installments June 30 and December 31 $ 50,000
Plan assets, December 31, 2021 $715,300
Defined benefit obligation, December 31, 2021, $708,150
REQUIRED -
1. Calculate the pension expense for the year.
2. Calculate the remeasurement gain/loss on the defined benefit obligation and on the plan assets. Specifically, state whether it is a gain or loss.