The following information pertains to Sparta Company s

defined benefit pension

The following information pertains to Sparta Company s defined benefit pension

The following information pertains to Sparta Company's defined benefit pension plan for
2017:
Discount rate.......................................................................8%
Expected rate of return on plan assets........................................10%
Remaining amortization period at 1/1 for prior service cost............8 years
Average service life for actuarial gains and losses.....................12 years
At 1/1
PBO.........................................................................$600,000
Fair value of pension plan assets..........................................720,000
AOCI-prior service cost.................................................240,000
AOCI-net actuarial (gain) loss..........................................(96,000)
At 12/31
PBO..........................................................................910,000
Fair value of pension plan assets.........................................825,000
Service cost for 2017 was $90,000. The Sparta pension plan did not receive any employer
contributions or pay any benefits during the year. Sparta uses the straight-line method of
amortization over the maximum period permitted for amortizing actuarial gains and losses.
Required:
Determine the amount for each of the following items:
1. Interest cost.
2. Expected dollar return on plan assets.
3. Actual return on plan assets.
4. Recognized actuarial gain (minimum amortization).
5. Recognized prior service costs.
6. Balance in the AOCI-net actuarial (gain) loss account on December 31, 2017.

The following information pertains to Sparta Company s defined benefit pension

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