Question:
Montoya Company has available the following information about its defined-benefit pension plan for the year ending December 31, 2018:
| Service cost for 2018 |
$45,000 |
| Accumulated benefit obligation |
683,000 |
| Plan assets at fair value |
630,000 |
| Accumulated OCI (PSC) |
300,000 |
| Vested benefit obligation |
505,000 |
| Market-related asset value |
725,000 |
| Projected benefit obligation |
865,000 |
| Accumulated OCI net gain |
90,000 |
| Interest on projected benefit obligation |
64,000 |
Instructions
Calculate the pension asset / liability to be recorded at December 31, 2018.
Calculate the 2018 amortization of the net gain. The average remaining service life of employees is 10 years.