Sunland Toothpaste Company initiates a defined benefit pension plan for its 50 employees on January 1, 2020. The insurancecompany which administers the pension plan provided the following selected information for the years 2020, 2021, and 2022.For Year Ended December 31,202020212022Plan assets (fair value)$50,000$85,000$180,200Accumulated benefit obligation44,700165,300289,100Projected benefit obligation60,000200,400326,100Net (gain) loss (for purposes of corridor calculation)78,80083,971Employer's funding contribution (made at end of year)50,00060,000105,100There were no balances as of January 1, 2020, when the plan was initiated. The actual and expected return on plan assets was 10%over the 3-year period, but the settlement rate used to discount the company's pension obligation was 13% in 2020, 11% in 2021,and 8% in 2022. The service cost component of net periodic pension expense amounted to the following: 2020, $60,000; 2021,$85,000; and 2022, $118,000. The average remaining service life per employee is 12 years. No benefits were paid in 2020, $30,000of benefits were paid in 2021, and $18,400 of benefits were paid in 2022 (all benefits paid at end of year). Calculate the amount of net periodic pension expense that the company would recognize in 2020, 2021, and 2022. (Roundanswers to 0 decimal places, e.g. 2,525.)Pension expense for 2020$Pension expense for 2021Pension expense for 2022%24%24

Sunland tooth paste company Pension expenses Working 2020 2021 2022 Service…

Answered: 2020 2021 2022 $50,000 $85,000 $180,200…

2020 2021 2022 $50,000 $85,000 $180,200 44,700 165,300 289,100 60,000 200,400 326,100 Iculation) 78,800 83,971 end of year) 50,000 60,000 105,100

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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