On January 1 of the current reporting year, Pepper Corporation's projected benefit obligation was $30.5 million. During the year, pension benefits paid by the trustee were $4.5 million. Service cost was $10.5 million. Pension plan assets earned $5.5 million as expected. At the end of the year, there was no net gain or loss and no prior service cost. The actuary's discount rate was 10%. Required: Determine the amount of the projected benefit obligation at December 31. (Enter your answers in millions rounded to 2 decimal places. Amounts to be deducted should be indicated with a minus sign.) ($ in millions) Beginning PBO Ending PBO

On January 1 of the current reporting year, Pepper Corporation's projected benefit obligation was $30.5 million. During the year, pension benefits paid by the trustee were $4.5 million. Service cost was $10.5 million. Pension plan assets earned $5.5 million as expected. At the end of the year, there was no net gain or loss and no prior service cost. The actuary's discount rate was 10%. Required: Determine the amount of the projected benefit obligation at December 31. (Enter your answers in millions rounded to 2 decimal places. Amounts to be deducted should be indicated with a minus sign.) ($ in millions) Beginning PBO Ending PBO

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 6RE

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On January 1, 2021, Ravetch Corporation’s projected benefit obligation was $30 million. During 2021, pension benefits paid by the trustee were $4 million. Service cost for 2021 is $12 million. Pension plan assets (at fair value) increased during 2021 by $6 million as expected. At the end of 2021, 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, 2021.
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