Question
In: Accounting
on january 1, 2015, newlin co. has the following balances: projected benefit obligation $2,100,000 fair value...
on january 1, 2015, newlin co. has the following balances:
projected benefit obligation $2,100,000
fair value of plan assets 1,800,000
the settlement rate is 10%. other data related to the pension plan for 2015 are
service cost $180,000
amortization of prior service costs 60,000
contributions 300,000
benefits paid 135,000
actual return on plan assets 237,000
amortization of net gain 18,000
the balance of the projected benefit obligation at december 31, 2015 is A.$2,490,000, B. $2,355,000, C.$2,340,000,D.2,310,000
The fair value of plan assets at December 31, 2015 is
a. $2,337,000
b. $2,100,000
c. $2,202,000
d.$2,065,000
Solutions
Expert Solution
| Projected Benefit obligation, Jan 1, 2015 | $ 2,100,000 | |
| Add: Service Cost | 180,000 | |
| Add: Interest cost at 10% | 210,000 | (2100000 x 10%) |
| Less: Benefits paid | (135,000) | |
| Projected Benefit obligation, Dec 31, 2015 | $ 2,355,000 | Ans is B |
| Fair Value of plan assets, jan 1, 2015 | $ 1,800,000 | |
| Add: Actual Return | 237,000 | |
| Add: Contribution | 300,000 | |
| Less: Benefits paid | (135,000) | |
| Fair Value of plan assets, Dec 31, 2015 | $ 2,202,000 | Ans is C |
ekkarill92 answered 1 year agoRelated Solutions
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