On January 1, 2020, McGee Co. had the following balances: Projected benefit obligation $6,400,000 Fair value of plan assets 6,000,000 Other data related to the pension plan for 2019: contributions to the plan 400,000 Benefits paid 350,000 On 1/1/2020, prior service cost was granted having a present value of 150,000 Actual return on plan assets 430,000 Settlement rate 9% Expected rate of return 7% Amortized Prior Service cost 40,000 Amortization of net gain 50,000 Service cost 250,000 How much will be reported on the balance sheet as Pension Asset/Liability at year end ? A. $6,480,000 B. $400,000 C. $159,500 D. $559,500
On January 1, 2020, McGee Co. had the following balances:
Projected benefit obligation $6,400,000
Fair value of plan assets 6,000,000
Other data related to the pension plan for 2019:
contributions to the plan 400,000
Benefits paid 350,000
On 1/1/2020, prior service cost was granted having
a present value of 150,000
Actual return on plan assets 430,000
Settlement rate 9%
Expected
Amortized Prior Service cost 40,000
Amortization of net gain 50,000
Service cost 250,000
How much will be reported on the
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A. $6,480,000
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B. $400,000
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C. $159,500
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D. $559,500 |
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