The funded status of Hilton Paneling Inc.'s defined benefit pension plan and the balances in prior service cost and the net gain–pensions, are given below. ($ in 000s) 2021 2021 Beginning Balances Ending Balances Projected benefit obligation $ 2,300 $ 2,501 Plan assets 2,400 2,591 Funded status 100 90 Prior service cost–AOCI 325 300 Net gain–AOCI 330 300 Retirees were paid $270,000, and the employer contribution to the pension fund was $245,000 at the end of 2021. The expected rate of return on plan assets was 10%, and the actuary’s discount rate is 7%. There were no changes in actuarial estimates and assumptions regarding the PBO. Required: 1. Determine the actual return on plan assets of 2021. 2. Determine the loss or gain on plan assets of 2021. 3. Determine the service cost of 2021. 4. Determine the pension expense of 2021. 5. Average remaining service life of active employees (used to determine amortization of the net gain).

1. Actual return on Plat assets

= Ending plan assets - beginning assets - employer contribution + retirees payment

= 2,591 - 2,400 - 245 + 270

= $216,000

2. Gain(loss) on plan assets

= Actual return - expected return

= 216,000 - (10% * 2,400,000-beginning assets)

= ($24,000) loss

3. Service cost

= Ending Projected benefit obligation - Beginning Projected benefit obligation - Interest cost + Retiree benefits

= 2,501 - 2,300 - (7% * 2,300) + 264

= $304,000

4. Pension expense

= Interest cost + expected return + Amortization of prior service cost + amortization of net gain + Service cost

= Interest cost + expected return + (beginning prior service cost - ending prior cost) + (Beginning net gain - ending net gain - loss on plan asset)  + Service cost

= (7% * 2,300)  + 240 + (325 - 300) + (330 - 300 - 24) + 304

= $736,000

5. Average remaining service life of active employees

= (Beginning Net gain - expected return) / Amortization of net gain

= (330 - 300) / (330 - 300 - 24)

= 5 years

explanation: doctrine of respondeat superior is a legal doctrine that is commonly used in tort. this principle makes an employer or principal legally responsible for the wrongful acts done by an employee or agent, if such acts occur within the scope of the employment or agency.

answer; risk transference;