Yamamoto Company experienced an actuarial loss of ¥750 in its defined benefit plan in 2012.Yamamoto has elected to recognize these losses immediately.For 2012, Yamamoto's revenues are ¥125,000, and expenses (excluding pension expense of ¥14,000, which does not include the actuarial loss) are ¥85,000.What is the amount of net income that would be presented in Yamamoto's statement of comprehensive income for 2012, if the company recognizes the loss in other comprehensive income?

Question

Quizplus · Accepted Answer

Net income is calculated as revenues minus expenses. Here, revenues are ¥125,000 and total expenses are ¥85,000 + ¥14,000 (pension expense) = ¥99,000. Thus, net income is ¥125,000 - ¥99,000 = ¥26,000. The actuarial loss is recognized in other comprehensive income, not affecting net income.

Yamamoto Company Experienced an Actuarial Loss of ¥750 in Its