Current Attempt in ProgressInformation for the Blossom Company pension plan in 2026 is as follows:Service cost is $66000Settlement rate is 10%, expected rate of return is 10%Actual return on plan assets is $160000There are no prior service costs to amortizeAnnual funding contribution is $91000Benefits paid to retirees during the year are $72000Average service life of all covered employees is 15 yearsThe projected benefit obligation on January 1, 2026 was $1110000The value of plan assets on January 1, 2026 was $910000The balance in Other Comprehensive Income- Gains/Losses is a $145000 credit on December 31, 2025.What is the balance of plan assets on December 31, 2026?O $1089000O $1030000O $910000O $1051000

Pension plan assets is the fund generated by the company for meeting the future compensation…

Information for the Blossom Company pension plan in 2026 is as follows: Service cost is $66000 Settlement rate is 10%, expected rate of return is 10% Actual return on plan assets is $160000 There are no prior service costs to amortize Annual funding contribution is $91000

Information for the Blossom Company pension plan in 2026 is as follows: Service cost is $66000 Settlement rate is 10%, expected rate of return is 10% Actual return on plan assets is $160000 There are no prior service costs to amortize Annual funding contribution is $91000

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

Current Attempt in Progress
Information for the Blossom Company pension plan in 2026 is as follows:
Service cost is $66000
Settlement rate is 10%, expected rate of return is 10%
Actual return on plan assets is $160000
There are no prior service costs to amortize
Annual funding contribution is $91000
Benefits paid to retirees during the year are $72000
Average service life of all covered employees is 15 years
The projected benefit obligation on January 1, 2026 was $1110000
The value of plan assets on January 1, 2026 was $910000
The balance in Other Comprehensive Income- Gains/Losses is a $145000 credit on December 31, 2025.
What is the balance of plan assets on December 31, 2026?
O $1089000
O $1030000
O $910000
O $1051000

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