Buffalo Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan. Plan assets $463,200 Projected benefit obligation 578,200 Pension asset/liability 115,000 Accumulated OCI (PSC) 100,100 Dr. As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. Service cost $86,600 Settlement rate, 8% Actual return on plan assets 53,200 Amortization of prior service cost 18,000 Expected return on plan assets 50,200 Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions 79,600 Contributions 99,600 Benefits paid retirees 85,100 Pension Asset/ Liability Projected Benefit Obligation Plan Assets
Buffalo Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan. Plan assets $463,200 Projected benefit obligation 578,200 Pension asset/liability 115,000 Accumulated OCI (PSC) 100,100 Dr. As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. Service cost $86,600 Settlement rate, 8% Actual return on plan assets 53,200 Amortization of prior service cost 18,000 Expected return on plan assets 50,200 Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions 79,600 Contributions 99,600 Benefits paid retirees 85,100 Pension Asset/ Liability Projected Benefit Obligation Plan Assets
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 5P
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Question
Buffalo Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan.
| Plan assets | $463,200 | ||
| Projected benefit obligation | 578,200 | ||
| Pension asset/liability | 115,000 | ||
| Accumulated OCI (PSC) | 100,100 | Dr. |
As a result of the operation of the plan during 2020, the following additional data are provided by the actuary.
| Service cost | $86,600 | |
| Settlement rate, 8% | ||
| Actual return on plan assets | 53,200 | |
| Amortization of prior service cost | 18,000 | |
| Expected return on plan assets | 50,200 | |
| Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions |
79,600 | |
| Contributions | 99,600 | |
| Benefits paid retirees |
85,100
|
|
Pension Asset/
Liability |
Projected Benefit
Obligation |
Plan
Assets |
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