Sandhill Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan. Plan assets $458,800 Projected benefit obligation 574,100 Pension asset/liability 115,300 Accumulated OCI (PSC) 103,900 Dr. As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. Service cost $94,400 Settlement rate, 8% Actual return on plan assets 54,600 Amortization of prior service cost 19,100 Expected return on plan assets 51,500 Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions 75,700 Contributions 101,100 Benefits paid retirees 86,700
Sandhill Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan. Plan assets $458,800 Projected benefit obligation 574,100 Pension asset/liability 115,300 Accumulated OCI (PSC) 103,900 Dr. As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. Service cost $94,400 Settlement rate, 8% Actual return on plan assets 54,600 Amortization of prior service cost 19,100 Expected return on plan assets 51,500 Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions 75,700 Contributions 101,100 Benefits paid retirees 86,700
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Sandhill Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan.
As a result of the operation of the plan during 2020, the following additional data are provided by the actuary.
| Plan assets | $458,800 | ||
| Projected benefit obligation | 574,100 | ||
| Pension asset/liability | 115,300 | ||
| Accumulated OCI (PSC) | 103,900 | Dr. |
As a result of the operation of the plan during 2020, the following additional data are provided by the actuary.
| Service cost | $94,400 | |
| Settlement rate, 8% | ||
| Actual return on plan assets | 54,600 | |
| Amortization of prior service cost | 19,100 | |
| Expected return on plan assets | 51,500 | |
| Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions |
75,700 | |
| Contributions | 101,100 | |
| Benefits paid retirees | 86,700 |
(a)
Using the data above, compute pension expense for Sandhill Corp. for the year 2020 by preparing a pension worksheet. (Enter all amounts as positive.)
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SANDHILL CORP.
Pension Worksheet |
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General
|
Memo Record
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Items
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Annual Pension
Expense |
Cash
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