Question

(17&18) on January 1, 2017 beaumont has the following balance Projected benefit obligation $2,100,000 Fair Value...

(17&18)

on January 1, 2017 beaumont has the following balance

Projected benefit obligation $2,100,000

Fair Value of plan asset $1,800,000

the settlement rate is 10% other date related to the pension plan for 2017 are

Service cost $180,000 Amortization of prior service cost due to increase in benefits $60,000 Contributions $300,000 Benefits paid $105,000 Actual return on plan assets $237,000 Amortization of net gain $18,000

1. The balance of the projected benefit obligation at December 31, 2017 is

2. The fair value of plan assets at December 31, 2017 is

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Answer #2

Ans:

Balance of the projected benefit obligation at December 31, 2017 is

Particulars

Amount$

Opening projected benefit obligation (PBO)

$2,100,000

Add: Service cost

$180,000

Add: Settlement cost cost (21,00,000*10%)

$2,10,000

Less:Benefits paid

($105,000)

Closing projected benefit obligation

$23,85,000

2) fair value of plan assets at December 31, 2017 is

Particulars

Amount $

Fair value of plan assets

$1,800,000

Add: Actual return on plan assets

$237,000

Add; Contributions

$3,00,000

Less: Benefits paid

($105,000)

The fair value of plan assets at December 31, 2017

$22,32,000
answered by: anonymous
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