The following data are for the pension plan for the employees of Sandhill Company. 1/1/20 12/31/20 12/31/21 Accumulated benefit obligation $ 5100000 $ 5200000 $ 6980000 Projected benefit obligation 5530000 5680000 7410000 Plan assets (at fair value) 4610000 5900000 6640000 AOCL – net loss 0 958000 1080000 Settlement rate (for year) 10% 10% Expected rate of return (for year) 9% 6% Sandhill’s contribution was $840000 in 2021 and benefits paid were $763000. Sandhill estimates that the average remaining service life is 15 years. The actual return on plan assets in 2021 was: 480000 663000 740000 563000
The following data are for the pension plan for the employees of Sandhill Company. 1/1/20 12/31/20 12/31/21 Accumulated benefit obligation $ 5100000 $ 5200000 $ 6980000 Projected benefit obligation 5530000 5680000 7410000 Plan assets (at fair value) 4610000 5900000 6640000 AOCL – net loss 0 958000 1080000 Settlement rate (for year) 10% 10% Expected rate of return (for year) 9% 6% Sandhill’s contribution was $840000 in 2021 and benefits paid were $763000. Sandhill estimates that the average remaining service life is 15 years. The actual return on plan assets in 2021 was: 480000 663000 740000 563000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The following data are for the pension plan for the employees of Sandhill Company.
1/1/20 12/31/20 12/31/21
| Accumulated benefit obligation | $ | 5100000 | $ | 5200000 | $ | 6980000 | ||||||
| Projected benefit obligation | 5530000 | 5680000 | 7410000 | |||||||||
| Plan assets (at fair value) | 4610000 | 5900000 | 6640000 | |||||||||
| AOCL – net loss | 0 | 958000 | 1080000 | |||||||||
| Settlement rate (for year) | 10% | 10% | ||||||||||
| Expected |
9% | 6% |
Sandhill’s contribution was $840000 in 2021 and benefits paid were $763000. Sandhill estimates that the average remaining service life is 15 years.
The actual return on plan assets in 2021 was:
480000
663000
740000
563000
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