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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