What is the pension expense at the end of 2021? What is the projected benefit obligation at the end of 2021? What is the plan assets balance at the end of 2021?
What is the pension expense at the end of 2021? What is the projected benefit obligation at the end of 2021? What is the plan assets balance at the end of 2021?
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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Question
U.S. Metallurgical Inc. reported the following balances in its financial statements and disclosure notes at December 31, 2020.
Plan assets | $ | 400,000 |
Projected benefit obligation | 320,000 | |
U.S.M.'s actuary determined that 2021 service cost is $60,000. Both the expected and actual rate of
Required:
- What is the pension expense at the end of 2021?
- What is the projected benefit obligation at the end of 2021?
- What is the plan assets balance at the end of 2021?
- What is the net pension asset or net pension liability at the end of 2021?
- Prepare
journal entries to record the (a) pension expense, (b) funding of plan assets, and (c) retiree benefit payments.
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