U.S. Metallurgical Inc. reported the following balances in its financial statements and disclosure notes at December 31, 2017.Plan assets $400,000Projected benefit obligation 320,000U.S.M.’s actuary determined that 2018 service cost is $60,000. Both the expected and actual rate of return onplan assets are 9%. The interest (discount) rate is 5%. U.S.M. contributed $120,000 to the pension fund at the endof 2018, and retirees were paid $44,000 from plan assets.Required:1. What is the pension expense at the end of 2018?2. What is the projected benefit obligation at the end of 2018?3. What is the plan assets balance at the end of 2018?4. What is the net pension asset or net pension liability at the end of 2018?5. Prepare journal entries to record the pension expense, funding of plan assets, and retiree benefit payments
U.S. Metallurgical Inc. reported the following balances in its financial statements and disclosure notes at December 31, 2017.
Plan assets $400,000
Projected benefit obligation 320,000
U.S.M.’s actuary determined that 2018 service cost is $60,000. Both the expected and actual
plan assets are 9%. The interest (discount) rate is 5%. U.S.M. contributed $120,000 to the pension fund at the end
of 2018, and retirees were paid $44,000 from plan assets.
Required:
1. What is the pension expense at the end of 2018?
2. What is the projected benefit obligation at the end of 2018?
3. What is the plan assets balance at the end of 2018?
4. What is the net pension asset or net pension liability at the end of 2018?
5. Prepare
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 3 images
