Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. blue company sponsors a defined benefit pension pl

Blue Company sponsors a defined benefit pension plan for its employees. The following data relate...

50.1K

Verified Solution

Question

Accounting

Blue Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2020 in which no benefits were paid.

1. The actuarial present value of future benefits earned by employees for service rendered in 2020 amounted to $56,000.

2. The company's funding policy requires a contribution to the pension trustee amounting to $144,494 for 2020.

3. As of January 1, 2020, the company had a projected benefit obligation of $896,600, an accumulated benefit obligation of $793,700 and a debt balance of $399,100 in accumulated OCI (PSC). The fair value of pension plan assets amounted to $600,500 at the beginning of the year. The actual and expected return on plant assets was $53,800. The settlement rate was 9%. No gains or losses occurred in 2020 and no benefits were paid.

4. Amortization of prior service cost was $50,000 in 2020. Amortization of net gain or loss was not required in 2020.

a) Determine the amounts of the components of pension expense that should be recognized by the company in 2020.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Advance Math
1.2K views

Solve the equation z^3/4 − 1 − i = 0 for z, and plot the solutions...

Physics
1.2K views

1.A 15 pF capacitor is charged to 1 kV and then removed from the battery and...

Biology
1.2K views

A back up copy is also called O sorting O ribbon

Biology
1.2K views

Match the following symptoms and signs to their causes Symptom resulting from Patient X s...

Biology
1.2K views

Which of the following is the protagonist usually classified as?A. the antagonistB. a main characterC....

Biology
1.2K views

Cilia differ from flagella in that Ocilia are anchored only in the proteins of the...

Basic Math
1.2K views

You take random sample of 200 people from Salinas and find that their average income...

Statistics
1.2K views

According to the information that comes with a certain prescription drug when taking this drug...

Statistics
1.2K views

A chicken soup recipe calls for 13 cups of chicken stock How much is this...

Accounting
1.2K views

Bern Corporation is considering an investment in equipment that will generate an Internal rate of...

Accounting
1.2K views

1. When an accounting firm audits a corporation, the first phase of the audit involves...

Accounting
1.2K views

A company plans to make four annual deposits of $4,250 each to a special bulding...