Fajardo Company provided the following pension plan information: Projected benefit obligation – January 1, 2021 3,500,000 Fair value of plan assets – January 1, 2021 2,800,000 Pension benefits paid during the year 250,000 Current service cost for 2021 1,750,000 Past service cost for 2021 425,000 Actual return on plan assets 180,000 Contribution to the plan 1,500,000 Actuarial loss due to change in assumption on PBO 200,000 Discount or settlement rate 10% What amount should be reported as accrued benefit cost on December 31, 2021? Group of answer choices 1,045,000 1,750,000 1,745,000 700,000
Fajardo Company provided the following pension plan information: Projected benefit obligation – January 1, 2021 3,500,000 Fair value of plan assets – January 1, 2021 2,800,000 Pension benefits paid during the year 250,000 Current service cost for 2021 1,750,000 Past service cost for 2021 425,000 Actual return on plan assets 180,000 Contribution to the plan 1,500,000 Actuarial loss due to change in assumption on PBO 200,000 Discount or settlement rate 10% What amount should be reported as accrued benefit cost on December 31, 2021? Group of answer choices 1,045,000 1,750,000 1,745,000 700,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
18
Fajardo Company provided the following pension plan information:
|
Projected benefit obligation – January 1, 2021 |
3,500,000 |
|
Fair value of plan assets – January 1, 2021 |
2,800,000 |
|
Pension benefits paid during the year |
250,000 |
|
Current service cost for 2021 |
1,750,000 |
|
Past service cost for 2021 |
425,000 |
|
Actual return on plan assets |
180,000 |
|
Contribution to the plan |
1,500,000 |
|
Actuarial loss due to change in assumption on PBO |
200,000 |
|
Discount or settlement rate |
10% |
What amount should be reported as accrued benefit cost on December 31, 2021?
Group of answer choices
1,045,000
1,750,000
1,745,000
700,000
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