Delta Manufacturing had service and interest costs of $80,000 related to its defined benefit pension plan for the year ended December 31, Year 9. The company's unrecognized prior service cost was $250,000 at December 31, Year 8, and the average remaining service life of the company's employees was 25 years. Plan assets earned an expected and actual return of 12% during Year 9. The company made contributions to the plan of $40,000 and paid benefits of $50,000 during the year. The pension plan had plan assets with a fair value of $500,000 at December 31, Year 8. The PBO was $600,000 at December 31, Year 8, and $650,000 at December 31, Year 9. Delta Manufacturing's expected tax rate is 25%. What is the funded status of Delta Manufacturing's pension plan at December 31, Year 9?

Delta Manufacturing had service and interest costs of $80,000 related to its defined benefit pension plan for the year ended December 31, Year 9. The company's unrecognized prior service cost was $250,000 at December 31, Year 8, and the average remaining service life of the company's employees was 25 years. Plan assets earned an expected and actual return of 12% during Year 9. The company made contributions to the plan of $40,000 and paid benefits of $50,000 during the year. The pension plan had plan assets with a fair value of $500,000 at December 31, Year 8. The PBO was $600,000 at December 31, Year 8, and $650,000 at December 31, Year 9. Delta Manufacturing's expected tax rate is 25%. What is the funded status of Delta Manufacturing's pension plan at December 31, Year 9?

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...

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