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mpany provides the following selected information related to its defined benefit pension plan for 2020. Pension asset/liability (January 1)   $25,600 Cr. Accumulated benefit obligation (December 31)   400,600   Actual and expected return on plan assets   10,400   Contributions (funding) in 2020   148,800   Fair value of plan assets (December 31)   796,000   Settlement rate

mpany provides the following selected information related to its defined benefit pension plan for 2020. Pension asset/liability (January 1)   $25,600 Cr. Accumulated benefit obligation (December 31)   400,600   Actual and expected return on plan assets   10,400   Contributions (funding) in 2020   148,800   Fair value of plan assets (December 31)   796,000   Settlement rate

FINANCIAL ACCOUNTING
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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Question 21

Sage Company provides the following selected information related to its defined benefit pension plan for 2020.

Pension asset/liability (January 1)   $25,600 Cr.
Accumulated benefit obligation (December 31)   400,600  
Actual and expected return on plan assets   10,400  
Contributions (funding) in 2020   148,800  
Fair value of plan assets (December 31)   796,000  
Settlement rate   10 %
Projected benefit obligation (January 1)   698,500  
Service cost   79,600

(b)

 
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Your answer is partially correct.
Indicate the pension-related amounts that would be reported in the company’s income statement and balance sheet for 2020.

Sage Company
Income Statement (Partial)
                                                                       
                                                                       
    
                                                                       
  
$ 
                                                                       
    
                                                                       
  
$ 

Sage Company
Balance Sheet (Partial)
                                                                       
                                                                       
            
                                                                       
    
$ 
    
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