Answered: Fair value of plan assets 37,000,000…

Fair value of plan assets 37,000,000 Defined benefit plan 33,000,000 Asset ceiling 2,500,000 What is the prepaid/accrued benefit cost on December 31, 2019?

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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Concept explainers

Employee Benefits

In an organization employees are the most important resource and most important asset. They can lead an organization to the sky or can be the reason for unsuccessful of business. Therefore, it is very much important that employees of an organization should be satisfied by the environment of the organization and most importantly with the salary, wages incentives, etc.

Question

100%

Fed Inc. had the following balances relating to the defined benefit plan on December 31, 2019:

Fair value of plan assets 37,000,000

Defined benefit plan 33,000,000

Asset ceiling 2,500,000

What is the prepaid/accrued benefit cost on December 31, 2019?

1,500,000

2,500,000

4,000,000

answer not given

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