On January 1, 2021, Parks Co. has the following balances: Projected benefit obligation $5,600,000 Fair value of plan assets 5,000,000 The settlement rate is 10%. Other data related to the pension plan for 2021 are: Service cost $
On January 1, 2021, Parks Co. has the following balances: Projected benefit obligation $5,600,000 Fair value of plan assets 5,000,000 The settlement rate is 10%. Other data related to the pension plan for 2021 are: Service cost $
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 6RE
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On January 1, 2021, Parks Co. has the following balances:
Projected benefit obligation $5,600,000
Fair value of plan assets 5,000,000
The settlement rate is 10%. Other data related to the pension plan for 2021 are:
Service cost $320,000
Amortization of prior service costs 72,000
Contributions 360,000
Benefits paid 335,000
Actual return on plan assets 352,000
Amortization of net gain 24,000
The balance of the projected benefit obligation at December 31, 2021 is$6,480,000.$6,128,000.$6,145,000.$5,992,000.
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