January 1, 2021, Carson Co. has the following balances: Projected benefit obligation $3,500,000 Fair value of plan assets 3,000,000 The settlement rate is 10%. Other data related to the pension plan for 2021 are: Service cost $300,000 Amortization of prior service costs due to increase in benefits 100,000 Contributions 500,000 Benefits paid 225,000 Actual return on plan assets 395,000 Amortization of net gain 30,000 The balance of the projected benefit obligation at December 31, 2021 is a. $4,150,000. b. $3,925,000
January 1, 2021, Carson Co. has the following balances: Projected benefit obligation $3,500,000 Fair value of plan assets 3,000,000 The settlement rate is 10%. Other data related to the pension plan for 2021 are: Service cost $300,000 Amortization of prior service costs due to increase in benefits 100,000 Contributions 500,000 Benefits paid 225,000 Actual return on plan assets 395,000 Amortization of net gain 30,000 The balance of the projected benefit obligation at December 31, 2021 is a. $4,150,000. b. $3,925,000
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 6RE
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Question
On January 1, 2021, Carson Co. has the following balances:
Projected benefit obligation $3,500,000
Fair value of plan assets 3,000,000
The settlement rate is 10%. Other data related to the pension plan for 2021 are:
Service cost $300,000
Amortization of prior service costs due to increase in benefits 100,000
Contributions 500,000
Benefits paid 225,000
Actual return on plan assets 395,000
Amortization of net gain 30,000
The balance of the projected benefit obligation at December 31, 2021 is
a. $4,150,000.
b. $3,925,000.
c. $3,900,000.
d. $3,850,000.
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