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Required: a.) What is the fair value of the plan assets at December 31, 2020? b.) What is the balance in the Net Defined Benefit/Liability account at December 31, 2019 and what is the funded status?

Required: a.) What is the fair value of the plan assets at December 31, 2020? b.) What is the balance in the Net Defined Benefit/Liability account at December 31, 2019 and what is the funded status?

FINANCIAL ACCOUNTING
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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AOG Inc. provides a defined benefit plan for its employees, and reports using ASPE. The pension plan administrator for AOG Inc. provided the following information for the year ended December 31, 2020 Fair value of plan assets, January................…..….…...... 820,000 Defined benefit obligation, January 1.... Current service cost............ Employer contributions...... Benefits paid to retirees...... Actuarial Gain............ Actual return............ Interest (discount) rate.. *********** 760,000 60,000 85,000 50,000 25,000 5% 6% Required: a.) What is the fair value of the plan assets at December 31, 2020? b.) What is the balance in the Net Defined Benefit/Liability account at December 31, 2019 and what is the funded status?
Transcribed Image Text:AOG Inc. provides a defined benefit plan for its employees, and reports using ASPE. The pension plan administrator for AOG Inc. provided the following information for the year ended December 31, 2020 Fair value of plan assets, January................…..….…...... 820,000 Defined benefit obligation, January 1.... Current service cost............ Employer contributions...... Benefits paid to retirees...... Actuarial Gain............ Actual return............ Interest (discount) rate.. *********** 760,000 60,000 85,000 50,000 25,000 5% 6% Required: a.) What is the fair value of the plan assets at December 31, 2020? b.) What is the balance in the Net Defined Benefit/Liability account at December 31, 2019 and what is the funded status?
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