Sandhill Corporation sponsors a defined benefit pension plan for its 100 employees. On January 1, 2023, the company's actuary provided the following information: Pension plan assets (fair value) $1,060,000 Defined benefit obligation 1,440,000 The actuary calculated that the present value of future benefits earned for employee services rendered in 2023 amounted to $213,100, the December 31, 2023 defined benefit obligation was $1,829,200, and the appropriate interest or discount rate was 8%. The plan assets generated a return of $80,700 during 2023. The company funded the 2023 current service cost as well as $107,200 the past service costs recognized in a previous year; however, no benefits were paid during the year. Sandhill is a private company an applies ASPE.
Sandhill Corporation sponsors a defined benefit pension plan for its 100 employees. On January 1, 2023, the company's actuary provided the following information: Pension plan assets (fair value) $1,060,000 Defined benefit obligation 1,440,000 The actuary calculated that the present value of future benefits earned for employee services rendered in 2023 amounted to $213,100, the December 31, 2023 defined benefit obligation was $1,829,200, and the appropriate interest or discount rate was 8%. The plan assets generated a return of $80,700 during 2023. The company funded the 2023 current service cost as well as $107,200 the past service costs recognized in a previous year; however, no benefits were paid during the year. Sandhill is a private company an applies ASPE.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Prepare a schedule that indicates what the plan's surplus or deficit is at December 31, 2023.
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Transcribed Image Text:Sandhill Corporation sponsors a defined benefit pension plan for its 100 employees. On January 1, 2023, the company's actuary
provided the following information:
Pension plan assets (fair value) $1,060,000
Defined benefit obligation
1,440,000
The actuary calculated that the present value of future benefits earned for employee services rendered in 2023 amounted to
$213,100, the December 31, 2023 defined benefit obligation was $1,829,200, and the appropriate interest or discount rate was 8%.
The plan assets generated a return of $80,700 during 2023. The company funded the 2023 current service cost as well as $107,200 of
the past service costs recognized in a previous year; however, no benefits were paid during the year. Sandhill is a private company and
applies ASPE.
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