Question

Dell Company adopted a defined benefit pension plan on January 1, 2017. Dell amortizes the initial prior service cost of $1,334,400 over 16 years. It assumes a 7% discount rate and an 8% expected rate of return. The following additional data are available for 2017: Service cost for 2017 $ 320,000 Prior service cost amortization 83,400 Employer contribution made at 12/31/2017 335,000 Compute the pension asset (liability) to be reported on Dell’s December 31, 2017, balance sheet. (A net pension liability should be indicated by a minus sign.)

Answer 1

ANSWER:

Retirement Benefit Plans: It alludes to the plans under which the sum payable to the workers of the association in lieu of administrations rendered by them is paid to the representatives on a later date that happens after the consummation of administrations. These plans likewise incorporates plans like investment opportunities, annuity plans and so on.

It is given that D Company had earlier help cost of $1,334,400 at January 01, 2011 and during 2011 it brought about assistance cost of $320,000 and amortized earlier assistance cost for $83,400 and made commitment of $335,000 and rebate rate is 7%. Register the measure of annuity (resource) risk for 2011 with the assistance of following condition, which is as per the following:

Annuity (resource) obligation =Beginning estimation of PHO + Service cost +Interest Cost - Contribution = $I,334,400,320.000 +$93,408-5335.000 =$1.412,808 Hence benefits risk to be accounted for at

December 31, 2011 is

[$1,412,808]