Question
Okner Inc. sponsors a defined benefit plan. The company provide the following information: - On December...
Okner Inc. sponsors a defined benefit plan. The company provide the following information:
- On December 31, 2020, plan assets were $270,000
- The projected benefit obligation on December 31, 2020 was $270,000
- During 2021, service cost was $30,000, and the settlement rate was 10% (use beginning PBO)
- Benefits paid in 2021 were $21,000 and contributions were $18,000
Required:
a. Calculate Okner's pension expense for 2021.
b. What are the balances of the projected benefit obligation and the plan assets at the end of 2021?
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