(Solution) - Roweburry Blanket Company offers all employees a defined benefit pension plan -(2025 Original AI-Free Solution)

Paper Details

Roweburry Blanket Company offers all employees a defined-benefit pension plan. At the end of the current year, Roweburry?s pension plan trustee reported the following information regarding the changes in the PBO, the plan assets at fair value, and the funded status of the plan.

Roweburry?s management confirmed that the market-related asset value of the plan assets is equal to its fair value. The company uses a 9% expected rate of return. The company amortized its unamortized prior service cost at a rate of 20% for the current year. The prior service costs are for employees that are not vested. The beginning balance in the accumulated other comprehensive income account was $ 18,252 due to accumulated net actuarial losses. To date, there has been no required amortization of actuarial gains or losses. The ­accumulated benefit obligation on the pension plan trustee?s report is equal to $ 1,245,000 at the end of the current year.
Required
a. Compute pension cost for the current year.
b. Prepare a t-account for the accumulated other comprehensive income account.