On January 1, 2021, Parks Co. has the following balances: Projected benefit obligation $5,600,000 Fair value of plan assets 5,000,000The settlement rate is 10%. Other data related to the pension plan for 2021 are: Service cost $320,000 Amortization of prior service costs 72,000 Contributions 360,000 Benefits paid 335,000 Actual return on plan assets 352,000 Amortization of net gain 24,000The balance of the projected benefit obligation at December 31, 2021 is $6,480,000. $6,128,000. $6,145,000. $5,992,000.

Benefit refers to profit.Obligation is Zn important part of accounting which is also called as…

Answered: On January 1, 2021, Parks Co. has the…

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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On January 1, 2021, Parks Co. has the following balances:

Projected benefit obligation $5,600,000
Fair value of plan assets 5,000,000

The settlement rate is 10%. Other data related to the pension plan for 2021 are:

Service cost $320,000
Amortization of prior service costs 72,000
Contributions 360,000
Benefits paid 335,000
Actual return on plan assets 352,000
Amortization of net gain 24,000

The balance of the projected benefit obligation at December 31, 2021 is

$6,480,000.

$6,128,000.

$6,145,000.

$5,992,000.

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