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The Shasti Corporation reported the following for the year ending December 31, 20X1:   Service cost: $142,610 Plan assets, January 1, 20X1: $1,200,000 Prior service cost amortization: $21,150 Expected return on plan assets: 9% Actual return on plan assets: 8.5% Pension expense: $175,760 Actuarially determined discount rate: 8%   What was the projected benefit obligation on January 1, 20X1?   Multiple Choice   $1,500,000   $1,425,000   $1,200,000   $1,333,333

The Shasti Corporation reported the following for the year ending December 31, 20X1:   Service cost: $142,610 Plan assets, January 1, 20X1: $1,200,000 Prior service cost amortization: $21,150 Expected return on plan assets: 9% Actual return on plan assets: 8.5% Pension expense: $175,760 Actuarially determined discount rate: 8%   What was the projected benefit obligation on January 1, 20X1?   Multiple Choice   $1,500,000   $1,425,000   $1,200,000   $1,333,333

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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The Shasti Corporation reported the following for the year ending December 31, 20X1:

 

  • Service cost: $142,610
  • Plan assets, January 1, 20X1: $1,200,000
  • Prior service cost amortization: $21,150
  • Expected return on plan assets: 9%
  • Actual return on plan assets: 8.5%
  • Pension expense: $175,760
  • Actuarially determined discount rate: 8%

 

What was the projected benefit obligation on January 1, 20X1?

 

Multiple Choice
  •  

    $1,500,000

  •  

    $1,425,000

  •  

    $1,200,000

  •  

    $1,333,333

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