On January 1, 2021, a company has the following balances for its defined-benefit plan: Projected benefit obligation $536,000Fair value of plan assets 804,000 Other data related to the pension plan for 2021 are:Amortization of accumulated OCI-loss$76,000Decrease in projected benefit obligation due to changes in actuarial assumptions 165,000Service cost311,840Interest cost218,000Amortization of prior service costs133,000Contributions475,000Benefits paid272,740Actual return on plan assets 398,000Expected return on plan assets406,000 The balance of the projected benefit obligation at December 31, 2021 is $__________.

Definition: Projected benefit obligation: It is a concept of measuring what a company needs now to…

Answered: Projected benefit obligation

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, a company has the following balances for its defined-benefit plan:

Projected benefit obligation $536,000Fair value of plan assets 804,000

Other data related to the pension plan for 2021 are:

Amortization of accumulated OCI-loss	$76,000
Decrease in projected benefit obligation due to changes in actuarial assumptions	165,000
Service cost	311,840
Interest cost	218,000
Amortization of prior service costs	133,000
Contributions	475,000
Benefits paid	272,740
Actual return on plan assets	398,000
Expected return on plan assets	406,000

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

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