Travis Transportation reported a net loss-AOCI in last year's balance sheet. This year, the company revised its estimate of future salary levels causing its PBO estimate to decline by $12. Also, the $24 million actual return on plan assets was less than the $27 million expected return.
Required:
1) Prepare the appropriate journal entries to record the gain and loss.
2) How do this gain and loss affect Travis' income statement, statement of comprehensive income, and balance sheet?

Question

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The Answer of Travis Transportation reported a net loss-AOCI in last year's balance sheet. This year, the company revised its estimate of future salary levels causing its PBO estimate to decline by $12. Also, the $24 million actual return on plan assets was less than the $27 million expected return.
Required:
1) Prepare the appropriate journal entries to record the gain and loss.
2) How do this gain and loss affect Travis' income statement, statement of comprehensive income, and balance sheet?

Travis Transportation Reported a Net Loss-AOCI in Last Year's Balance