Question 2( Fiscella Landry Corp. (FLC) is a publicly accountable entity that operates a defined benefit plan for its employees. Information about the pension plan is as follows: Defined benefit obligation -- December 31, 2019 Pension plan assets $13,400,000 $ 9,500,000 December 31, 2019 Current service cost -2020* Benefit payments to retirees Actual return on plan assets Contributions to pension plan -- 2020* $ 2,300,000 $ 1.200,000 $ 210,000 $2,500,000 - 2020 - 2020 - Yield on high-quality corporate bonds Defined benefit obligation -- December 31, 2020 (per actuary) * Each of these occurred (or was accrued) at December 31, 2020. 5% $18,840,000 On January 2, 2020, FLC made a change to the defined benefit plan formula. Because FLC made the change retrospectively with regard to services rendered by current employees, the defined benefit obligation increased by $3,600,000 on this date, In addition to the contributions listed above, FLC made a $3,000,000 contribution to the pension plan assets on June 30, 2020. Required: Calculate the ending balances of FLC's defined benefit obligation and pension plan assets at December 31, 2020. Start with the opening balance and reconcile to the ending balance

Question 2( Fiscella Landry Corp. (FLC) is a publicly accountable entity that operates a defined benefit plan for its employees. Information about the pension plan is as follows: Defined benefit obligation -- December 31, 2019 Pension plan assets $13,400,000 $ 9,500,000 December 31, 2019 Current service cost -2020* Benefit payments to retirees Actual return on plan assets Contributions to pension plan -- 2020* $ 2,300,000 $ 1.200,000 $ 210,000 $2,500,000 - 2020 - 2020 - Yield on high-quality corporate bonds Defined benefit obligation -- December 31, 2020 (per actuary) * Each of these occurred (or was accrued) at December 31, 2020. 5% $18,840,000 On January 2, 2020, FLC made a change to the defined benefit plan formula. Because FLC made the change retrospectively with regard to services rendered by current employees, the defined benefit obligation increased by $3,600,000 on this date, In addition to the contributions listed above, FLC made a $3,000,000 contribution to the pension plan assets on June 30, 2020. Required: Calculate the ending balances of FLC's defined benefit obligation and pension plan assets at December 31, 2020. Start with the opening balance and reconcile to the ending balance

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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