Reference no: EM132930081
Question - On December 31, 2020, Horsebarn Co. had the following defined benefit pension plan balances (in thousands of $s):
Projected benefit obligation $4,800 Cr.
Plan assets $4,500 Dr.
AOCI - Prior service costs 153 Dr.
AOCI - Net gains and losses $590 Cr.
As of December 31, 2021, the fair value of the plan assets is $5,230. The balance of the projected benefit obligation on December 31, 2021 is $5,240.
In addition, Horsebarn amended their plan as of January 1, 2018, giving rise to $180 of prior service costs.
The interest (settlement) rate applicable to the plan is 6%.
Horsebarn estimates that the average remaining service time of their current employees is 22 years in 2021.
Horsebarn records any necessary amortization of prior service costs and actuarial gains and losses using the straight-line method over the expected average remaining service life of current employees.
Other data related to the pension plan are (in thousands of $s):
2021
Contributions by Horsebarn to the plan 520
Benefits Paid 200
Expected rate of return on assets 8%
Required -
1) Prepare a completed pension worksheet for fiscal year 2021 using the below worksheet.
2) What is the funded status of the pension plan on December 31, 2021?
3) If Net Income for 2021 is $400, what is Comprehensive Income for 2021?