On January 1, 2015, Parks Co. has the following balances: Projected benefit obligation $4,200,000 Fair value of plan assets 3,480,000 The settlement rate is 10%. Other data related to the pension plan for 2015 are: Service cost $226,000 Amortization of prior service costs 54,000 Contributions 270,000 Benefits paid 250,000 Actual return on plan assets 264,000 Amortization of net gain 18,000 The balance of the projected benefit obligation at December 31, 2015 is a. 4,494,000 b. 4,596,000 c. 4,860,000 d. 4,610,000 The fair value of plan assets at December 31, 2015 is a. 3,506,000 b. 3,764,000 c. 4,034,000 d. 4,284,000
On January 1, 2015, Parks Co. has the following balances: Projected benefit obligation $4,200,000 Fair value of plan assets 3,480,000 The settlement rate is 10%. Other data related to the pension plan for 2015 are: Service cost $226,000 Amortization of prior service costs 54,000 Contributions 270,000 Benefits paid 250,000 Actual return on plan assets 264,000 Amortization of net gain 18,000 The balance of the projected benefit obligation at December 31, 2015 is a. 4,494,000 b. 4,596,000 c. 4,860,000 d. 4,610,000 The fair value of plan assets at December 31, 2015 is a. 3,506,000 b. 3,764,000 c. 4,034,000 d. 4,284,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On January 1, 2015, Parks Co. has the following balances:
| Projected benefit obligation | $4,200,000 |
| Fair value of plan assets | 3,480,000 |
The settlement rate is 10%. Other data related to the pension plan for 2015 are:
| Service cost | $226,000 |
| Amortization of prior service costs | 54,000 |
| Contributions | 270,000 |
| Benefits paid | 250,000 |
| Actual return on plan assets | 264,000 |
| Amortization of net gain | 18,000 |
The balance of the projected benefit obligation at December 31, 2015 is
a. 4,494,000
b. 4,596,000
c. 4,860,000
d. 4,610,000
The fair value of plan assets at December 31, 2015 is
a. 3,506,000
b. 3,764,000
c. 4,034,000
d. 4,284,000
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