Sage Company provides the following selected information related to its defined benefit pension plan for 2020. Pension asset/liability (January 1) $25,600 Cr. Accumulated benefit obligation (December 31) 400,600
Sage Company provides the following selected information related to its defined benefit pension plan for 2020. Pension asset/liability (January 1) $25,600 Cr. Accumulated benefit obligation (December 31) 400,600
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 1E
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Question
Sage Company provides the following selected information related to its defined benefit pension plan for 2020.
| Pension asset/liability (January 1) | $25,600 | Cr. | |
| Accumulated benefit obligation (December 31) | 400,600 | ||
| Actual and expected return on plan assets | 10,400 | ||
| Contributions (funding) in 2020 | 148,800 | ||
| Fair value of plan assets (December 31) | 796,000 | ||
| Settlement rate | 10 | % | |
| Projected benefit obligation (January 1) | 698,500 | ||
| Service cost | 79,600 |
(b)
Indicate the pension-related amounts that would be reported in the company’s income statement and balance sheet for 2020.
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Sage Company
Income Statement (Partial) |
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$
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$
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Sage Company
Balance Sheet (Partial) |
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$
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