21*Barrel Corporation had service and interest costs of S50,000 related to its defined benefit pension plan for the year endedDecember 31, Year 7. The company's unrecognized prior service cost was $200,000 at December 31, Year 6 and the averageremaining service life of the company's employees was 20 years. Plan assets earned an expected and actual retum of 100% duringYear 7. The company made contributions to the plan of $25,000 and paid benefits of 530,000 during the year. The pension planhad plan assets with a fair value of $300,000 at December 31, Year 6. The PBO was S400,000 at December 31, Year 6 and$420,000 at December 31, Year 7.What is funded status of Barrel Corporation's pension plan at December 31, Year 7?

PBO = Projected Benefit Obligation, the amount that must be paid to defined pension plan of the…

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What is funded status of Barrel Corporation's pension plan at Dęcember 31, Year 7?

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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