Use the following information for questions 1 through 3.

HW assignment 5

** Please show calculations for each question to get credit; failure to do so will result in receiving a grade of 0 for the assignment.

Use the following information for questions 1 through 3.

The following information for Cooper Enterprises is given below:

December 31, 2015

Assets and obligations

Plan assets (at fair value)                                                                                $400,000

Accumulated benefit obligation                                                                       640,000

Projected benefit obligation                                                                             700,000

Other Items

Pension asset / liability, January 1, 2015                                                            20,000

Contributions                                                                                                    250,000

Accumulated other comprehensive loss                                                          335,800

There were no actuarial gains or losses at January 1, 2015. The average remaining service life of employees is 12 years.

1. What is the pension expense that Cooper Enterprises should report for 2015?
2. $304,200
3. $314,200
4. $250,000
5. $335,800

2. What is the amount that Cooper Enterprises should report as its pension liability on its balance sheet as of December 31, 2015?
3. $60,000
4. $640,000
5. $300,000
6. $700,000

3. The amortization of Other Comprehensive Loss for 2016 is:
4. $0
5. $15,580
6. $22,150
7. $33,580

Use the following information for questions 4 through 6.

The following data are for the pension plan for the employees of Lockett Company.

     1/1/14              12/31/14             12/31/15        

Accumulated benefit obligation                  $2,500,000         $2,600,000         $3,400,000

Projected benefit obligation                          2,700,000           2,800,000           3,700,000

Plan assets (at fair value)                               2,300,000           3,000,000           3,300,000

AOCL – net loss                                                          -0-              580,000              500,000

Settlement rate (for year)                                                                  10%                      9%

Expected rate of return (for year)                                                        8%                      7%

Lockett’s contribution was $420,000 in 2015 and benefits paid were $275,000. Lockett estimates that the average remaining service life is 20 years.

4. The actual return on plan assets in 2015 was
5. $300,000.
6. $255,000.
7. $200,000.
8. $155,000.

5. Assume that the actual return on plan assets in 2015 was $245,000. The unexpected gain on plan assets in 2015 was
6. $32,000.
7. $55,000.
8. $35,000.
9. $34,000.

6. The corridor for 2015 was $300,000. The amount of AOCI-net loss amortized in 2015 was
7. $33,333.
8. $32,000.
9. $14,000.
10. $12,000.