Pharoah Corporation applies ASPE and sponsors a defined benefit pension plan. The following pension plan information is available for 2023 and 2024: Plan assets (fair value). December 31 Defined benefit obligation, January 1 Net defined benefit liability (asset). January 1 Current service cost Actual return on plan assets Funding of current service cost Funding of past service costs Benefits paid Interest/discount rate (a) 2023 $512,000 608,000 246,900 53,980 24,600 58,000 83,000 Calculate defined benefit expense for 2023 and 2024. Defined benefit expense, 2023 $ Defined benefit expense, 2024 $ ? 9% 2024 $642,000 702,000 The pension fund paid out benefits in each year. There were no actuarial gains or losses incurred on the DBO in the two-year period. ? 86,000 46.600 86,000 55,000 ? 9%
Pharoah Corporation applies ASPE and sponsors a defined benefit pension plan. The following pension plan information is available for 2023 and 2024: Plan assets (fair value). December 31 Defined benefit obligation, January 1 Net defined benefit liability (asset). January 1 Current service cost Actual return on plan assets Funding of current service cost Funding of past service costs Benefits paid Interest/discount rate (a) 2023 $512,000 608,000 246,900 53,980 24,600 58,000 83,000 Calculate defined benefit expense for 2023 and 2024. Defined benefit expense, 2023 $ Defined benefit expense, 2024 $ ? 9% 2024 $642,000 702,000 The pension fund paid out benefits in each year. There were no actuarial gains or losses incurred on the DBO in the two-year period. ? 86,000 46.600 86,000 55,000 ? 9%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Pharoah Corporation applies ASPE and sponsors a defined benefit pension plan. The following pension plan information is available
for 2023 and 2024:
Plan assets (fair value). December 31
Defined benefit obligation, January 1
Net defined benefit liability (asset). January 1
Current service cost
Actual return on plan assets
Funding of current service cost
Funding of past service costs
Benefits paid
Interest/discount rate
(a)
Defined benefit expense, 2023 $
2023
$512,000
608,000
246,900
Defined benefit expense, 2024
53,980
$
24,600
58,000
Calculate defined benefit expense for 2023 and 2024.
83,000
?
9%
2024
$642,000
702,000
?
The pension fund paid out benefits in each year. There were no actuarial gains or losses incurred on the DBO in the two-year period.
86,000
46,600
86,000
55,000
?
9%
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