A company's defined benefit pension plan had a PBO of $271,000 on January 1, 2016. During 2016, pension benefits paid were $49,000. The discount rate for the plan for this year was 10%. Service cost for 2016 was $87,000. Plan assets (fair value) increased during the year by $52,000. The amount of the PBO at December 31, 2016, was: A. $222,000. B. $385,100. C. $336,100. D. None of these answer choices is correct.

A company's defined benefit pension plan had a PBO of $271,000 on January 1, 2016. During 2016, pension benefits paid were $49,000. The discount rate for the plan for this year was 10%. Service cost for 2016 was $87,000. Plan assets (fair value) increased during the year by $52,000. The amount of the PBO at December 31, 2016, was: A. $222,000. B. $385,100. C. $336,100. D. None of these answer choices is correct.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 3RE: Pinecone Company has plan assets of 500,000 at the beginning of the current year and expects to earn...

See similar textbooks

Similar questions

Please give me answer general accounting
A company defined benefit pension plan had a pbo solve this question
On January 1, 2016, J Co. has the following balances: Defined benefit obligation P2,100,000 Fair value of plan assets 1,800,000 The discount rate is 10%. Other data related to the pension plan for 2016 are: Service cost P180,000 Past service costs due to increase in benefits 60,000 Contributions 300,000 Benefits paid 105,000 Actual return on plan assets 237,000 Net gain on liability 18,000 The balance of the defined benefit obligation at December 31, 2016 is
A company's postretirement health care benefit plan had an APBO of $265,000 on January 1, 2018. During 2018, retiree benefits paid were $40,000. The discount rate for the plan for this year was 10%. Service cost for 2018 was $80,000. Plan assets (fair value) increased during the year by $45,000. The amount of the APBO at December 31, 2018, was: a. $305,000 b. $371,500 c.$225,000 d.$331,500
Can you please solve this accounting question?
On January 1, 2016, Ju Co. has the following balances: Defined benefit obligation P2,100,000 Fair value of plan assets 1,800,000 The discount rate is 10%. Other data related to the pension plan for 2016 are: Service cost P180,000 Past service costs due to increase in benefits 60,000 Contributions 300,000 Benefits paid 105,000 Actual return on plan assets 237,000 Net gain on liability 18,000 The fair value of plan assets at December 31, 2016 is
Presented below is pension information for A Company for the year 2016: Interest on plan assets P24,000 Interest on vested benefits 10,000 Service cost 35,000 Interest on defined benefit obligation 21,000 Past service cost due to increase in benefits 18,000 The amount of pension expense to be reported for 2016 is
Determination of Pension Plan Amounts Various pension plan information of Kerem Company for 2016 and 2017 is as follows: 2016 2017 Service cost $100,000 (G) Interest cost on projected benefit obligation 54,000 (g) Discount rate 9% 9% Amortization of prior service cost 4,000 4,000 Plan assets (fair value), 1/1* 500,000 615,000 Projected benefit obligation, 1/1** (a) 720,000 Expected long-term rate of return on plan assets (b) 11% Amortization of net loss (d) 700 Accrued pension cost (liability), 12/31 (f) (k) Average service life of employees 10 years 10 years Pension expense (e) 110,850 Cumulative net loss, 1/1 68,000 (i) Expected return on plan assets 50,000 (h) Corridor (c) 72,000 *1/1/2018: $762,000 **1/1/2018: $857,800
Horizon Inc. has a defined benefit pension plan. The following pension-related data were available for the current calendar year: PBO: Balance, Jan. 1 $ 235,000 Service cost 36,000 Interest cost (5% discount rate) 11,750 Gain from changes in actuarial assumptions in 2021 (4,500 )Benefits paid to retirees (15,000 )Balance, Dec. 31 $ 263,250 Plan assets: Balance, Jan.1 $ 245,000 Actual return (expected return was $22,000) 20,000 Contributions 30,000 Benefits paid (15,000 )Balance, Dec. 31 $ 280,000 ABO, Dec. 31 $ 239,500 January 1, 2021, balances: Prior service cost–AOCI (amortization $5,075/yr.) 5,075 Net gain–AOCI (amortization, if any, over 15 years) 50,750 There were no other relevant data. Required:1. Calculate the 2021 pension expense.2. Prepare the 2021 journal entries to record pension expense and funding.3. Prepare any journal entries to record any 2021 gains or losses.
Foster Corporation received the following report from its actuary at the end of the year: December 31, 2014 December 31, 2015 Projected benefit obligation $2,000,000 $2,200,000 Accumulated benefit obligation 1,380,000 1,440,000 Fair value of pension plan assets 1,300,000 1,480,000 The amount reported as the pension liability at December 31, 2014 is a. 0 b. 80,000 c. 620,000 d. 700,000 The amount reported at the pension liability at December 31, 2015 is a. 2,200,000 b. 1,480,000 c. 720,000 d. 760,000
La, Inc. sponsors a defined-benefit pension plan. The following data relates to the operation of the plan for the year 2016. Service cost P 220,000 Contributions to the plan 200,000 Actual return on plan assets 180,000 Defined benefit obligation (beginning of year) 2,600,000 Fair value of plan assets (beginning of year) 2,400,000 The discount rate was 10%. The amount of pension expense reported for 2016 is
A company's defined benefit pension plan had a projected benefit obligation (PBO) of $350,000 on January 1, Year 1. During Year 1, pension benefits paid were $60,000, The discount rate for the plan for Year 1 was 11%. Service cost for the year was $90,000. Plan assets (fair value) increased during the year by $50,000. What was the PBO at December 31, Year 1? A. $290,000 B. $418,500 C. $380,000 D. $368,500