Skysong Inc. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan. Plan assets $1,710,000 Projected benefit obligation 1,995,000 Pension liability 285,000 Prior service cost 246,000 As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. Service cost for 2020 $135,000 Settlement rate, 6% Actual return on plan assets in 2020 112,000 Amortization of prior service cost 24,000 Expected return on plan assets 165,000 Unexpected gain from change in projected benefit obligation, due to change in actuarial predictions 215,000 Contributions in 2020 148,000 Benefits paid retirees in 2020 180,000

Skysong Inc. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan. Plan assets $1,710,000 Projected benefit obligation 1,995,000 Pension liability 285,000 Prior service cost 246,000 As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. Service cost for 2020 $135,000 Settlement rate, 6% Actual return on plan assets in 2020 112,000 Amortization of prior service cost 24,000 Expected return on plan assets 165,000 Unexpected gain from change in projected benefit obligation, due to change in actuarial predictions 215,000 Contributions in 2020 148,000 Benefits paid retirees in 2020 180,000

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 4E

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bartleby, a Learneo, Inc. business

Plan assets		$1,710,000
Projected benefit obligation		1,995,000
Pension liability		285,000
Prior service cost		246,000

Service cost for 2020		$135,000
Settlement rate, 6%
Actual return on plan assets in 2020		112,000
Amortization of prior service cost		24,000
Expected return on plan assets		165,000
Unexpected gain from change in projected benefit obligation, due to change in actuarial predictions		215,000
Contributions in 2020		148,000
Benefits paid retirees in 2020		180,000