What amount should be reported as accrued benefit cost at year-end? a. 2,000,000 b. 1,500,000 c. 1,750,000
Sandra Company provided the following information for the current year:
Current service cost 500,000
Interest Expense on PBO 600,000
Interest income on plan assets 350,000
Loss on plan settlement before normal
retirement date 250,000
Present value of benefit obligation settled
in advance 950,000
Past service cost during the year 300,000
Actual return on plan assets 850,000
Actuarial loss on PBO during the year 200,000
Contribution to the plan 1,500,000
Benefits paid to retirees 1,000,000
Discount rate 10%
Required:
1. What amount should be reported as accrued benefit cost at year-end?
a. 2,000,000
b. 1,500,000
c. 1,750,000
d. 500,000
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