Question #20 The following information pertains to Hopson Co.'s pension plan: Actuarial estimate of projected benefit...

Question #20

The following information pertains to Hopson Co.'s pension plan:

Actuarial estimate of projected benefit obligation at 1/1/18 $82,000
Assumed discount rate (Interest rate) 10%
Service costs for 2018 $23,000
Pension benefits paid during 2018 $15,000

If no change in actuarial estimates occurred during 2018, Hopson's projected benefit obligation at December 31, 2018 was

Hopson's projected benefit obligation at December 31, 2018 was $

Expert Solution

Hopson's projected benefit obligation at December 31, 2018 was $98,200
Actuarial estimate of projected benefit obligation at 1/1/18	82,000
Add: Service costs for 2018	23,000
Add: Return at 10% on $82,000	8,200
Less: Pension benefits paid during 2018	(15,000)

Projected benefit obligation at December 31, 2018	98,200

Hence, the Hopson's projected benefit obligation at December 31, 2018 was $98,200

ekkarill92 answered 2 years ago

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