On January 1, 20X1, Cello Co. established a defined benefit pension plan for its estimated the service cost for 20X1 to be $45,000. At January 1, 20X2, it estim $49,000. On the plan inception date, prior service credit was granted to emplo between the company's formation and plan inception. The prior service cost w January 1, 20X1. Cello uses a 10% discount rate and assumes a return on plan a service life of employees is 20 years, and the company will fund at the end of e cost plus interest cost for 20X1 and 20X2. December 31, 20X2 20X1 PBO ? ? Benefits paid at 12/31 2,000 Fair value of plan assets Contributions at 12/31 Actual return on plan assets ? ? 3,200

On January 1, 20X1, Cello Co. established a defined benefit pension plan for its estimated the service cost for 20X1 to be $45,000. At January 1, 20X2, it estim $49,000. On the plan inception date, prior service credit was granted to emplo between the company's formation and plan inception. The prior service cost w January 1, 20X1. Cello uses a 10% discount rate and assumes a return on plan a service life of employees is 20 years, and the company will fund at the end of e cost plus interest cost for 20X1 and 20X2. December 31, 20X2 20X1 PBO ? ? Benefits paid at 12/31 2,000 Fair value of plan assets Contributions at 12/31 Actual return on plan assets ? ? 3,200

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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