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On January 1, 2021, Parks Co. has the following balances: Projected benefit obligation $5,600,000 Fair value...

On January 1, 2021, Parks Co. has the following balances: Projected benefit obligation $5,600,000 Fair value of plan assets 5,000,000 The settlement rate is 10%. Other data related to the pension plan for 2021 are: Service cost $320,000 Amortization of prior service costs 72,000 Contributions 360,000 Benefits paid 335,000 Actual return on plan assets 352,000 Amortization of net gain 24,000 Calculate the fair value of plan assets at December 31, 2021.

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Answer #1

Solution: Fair value of plan assets at December 31, 2021 = $ 5,377,000

Calculation:

Fair value of plan assets, January 1st , 2021 $         5,000,000
Actual return on plan assets $             352,000
Contributions $             360,000
Benefits Paid $          (335,000)
Fair value of plan assets, December 31st , 2021 $         5,377,000
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