On January 1, 2022, Woody Corporation’s projected benefit obligation was $36 million. During 2022, pension benefits paid by the trustee were $8 million. Service cost for 2022 is $16 million. Pension plan assets (at fair value) increased during 2022 by $10 million as expected. At the end of 2022, there were no pension-related other comprehensive income (OCI) accounts. The actuary’s discount rate was 10%. Required: Determine the amount of the projected benefit obligation at December 31, 2022.
On January 1, 2022, Woody Corporation’s projected benefit obligation was $36 million. During 2022, pension benefits paid by the trustee were $8 million. Service cost for 2022 is $16 million. Pension plan assets (at fair value) increased during 2022 by $10 million as expected. At the end of 2022, there were no pension-related other comprehensive income (OCI) accounts. The actuary’s discount rate was 10%. Required: Determine the amount of the projected benefit obligation at December 31, 2022.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2022, Woody Corporation’s projected benefit obligation was $36 million. During 2022, pension benefits paid by the trustee were $8 million. Service cost for 2022 is $16 million. Pension plan assets (at fair value) increased during 2022 by $10 million as expected. At the end of 2022, there were no pension-related other comprehensive income (OCI) accounts. The actuary’s discount rate was 10%.
Required:
Determine the amount of the projected benefit obligation at December 31, 2022.
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