As of December 31, 2020, the projected benefit obligation and plan assets of a noncontributory defined benefit plan sponsored by Durasell Inc. were as follows. Account Balances, Dec. 31 2020 Projected benefit obligation $187,200 Plan assets at fair value 180,000 Determine the funded status of Durasell Inc.’s pension plan. Note: Indicate an underfunded plan with a negative sign. Funded status, Dec. 31, 2020
As of December 31, 2020, the projected benefit obligation and plan assets of a noncontributory defined benefit plan sponsored by Durasell Inc. were as follows. Account Balances, Dec. 31 2020 Projected benefit obligation $187,200 Plan assets at fair value 180,000 Determine the funded status of Durasell Inc.’s pension plan. Note: Indicate an underfunded plan with a negative sign. Funded status, Dec. 31, 2020
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Determining Funded Status
As of December 31, 2020, the projected benefit obligation and plan assets of a noncontributory defined benefit plan sponsored by Durasell Inc. were as follows.
| Account Balances, Dec. 31 | 2020 |
|---|---|
| Projected benefit obligation | $187,200 |
| Plan assets at fair value | 180,000 |
Determine the funded status of Durasell Inc.’s pension plan.
- Note: Indicate an underfunded plan with a negative sign.
| Funded status, Dec. 31, 2020 |
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