Question

In: Accounting

On January 1, 2021, Pharoah Co. has the following balances: Projected benefit obligation Fair value of plan assets

On January 1, 2021, Pharoah Co. has the following balances:

Projected benefit obligation $4800000

Fair value of plan assets 4200000

The settlement rate is 10%. Other data related to the pension plan for 2021 are:

Service cost $312000

Amortization of prior service costs 68000

Contributions 352000

Benefits paid 327000

Actual return on plan assets 344000

Amortization of net gain 23200

The balance of the projected benefit obligation at December 31, 2021 is

$5265000.

$5280000.

$5100000.

$5592000.

Expert Solution

Computation of the balance projected benefits obligation at December 31 2021 is as follows:

Particulars. Amount

Projected benefit obligation. $4800000

Add: Service cost $312000

Less: Benefits paid (327000)

Add: Settelment cost (4800000*10%) $480000

Projected benefit obligation at December 31, 2021 $5265000

Answer:

The balance of the projected benefit obligation at December 31, 2021 is : $5265000

Projected benefit obligation at December 31, 2021 $5265000

S Mahalaxmi answered 3 years ago

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