Urban Life Ltd. sponsors a defined benefit pension plan for its employees. It is now the 20X9 fiscal year. An appropriate interest rate for long-term debt is 7%. Information with respect to the plan is as follows: Fair value of plan assets, 31 December 20x8 Defined benefit obligation, 31 December 20x8 Actual return on plan assets for 20X9 Past service cost from amendment dated 1 January 20X9, liability is reduced because benefits were reduced. Actuarial revaluation dated 31 December 20X9; liability is reduced because of changed mortality assumptions. Funding payment at year-end 20x9 Benefits paid to retirees during 20X9 Current service cost for 20x9 $5,473,000 6,649,000 62,600 (218,200) (618,700) 525,000 120,000 257,900 Required: 1. Calculate the SFP net defined benefit pension liability as of 31 December 20X8. Net defined benefit pension liability, 31 December 20X8

Urban Life Ltd. sponsors a defined benefit pension plan for its employees. It is now the 20X9 fiscal year. An appropriate interest rate for long-term debt is 7%. Information with respect to the plan is as follows: Fair value of plan assets, 31 December 20x8 Defined benefit obligation, 31 December 20x8 Actual return on plan assets for 20X9 Past service cost from amendment dated 1 January 20X9, liability is reduced because benefits were reduced. Actuarial revaluation dated 31 December 20X9; liability is reduced because of changed mortality assumptions. Funding payment at year-end 20x9 Benefits paid to retirees during 20X9 Current service cost for 20x9 $5,473,000 6,649,000 62,600 (218,200) (618,700) 525,000 120,000 257,900 Required: 1. Calculate the SFP net defined benefit pension liability as of 31 December 20X8. Net defined benefit pension liability, 31 December 20X8

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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