Skysong Inc. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan. Plan assets $1,710,000 Projected benefit obligation 1,995,000 Pension liability 285,000 Prior service cost 246,000 As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. Service cost for 2020 $135,000 Settlement rate, 6% Actual return on plan assets in 2020 112,000 Amortization of prior service cost 24,000 Expected return on plan assets 165,000 Unexpected gain from change in projected benefit obligation, due to change in actuarial predictions 215,000 Contributions in 2020 148,000 Benefits paid retirees in 2020 180,000
Skysong Inc. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan. Plan assets $1,710,000 Projected benefit obligation 1,995,000 Pension liability 285,000 Prior service cost 246,000 As a result of the operation of the plan during 2020, the following additional data are provided by the actuary. Service cost for 2020 $135,000 Settlement rate, 6% Actual return on plan assets in 2020 112,000 Amortization of prior service cost 24,000 Expected return on plan assets 165,000 Unexpected gain from change in projected benefit obligation, due to change in actuarial predictions 215,000 Contributions in 2020 148,000 Benefits paid retirees in 2020 180,000
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter12: Liabilities: Off-balance-sheet Financing, Retirement Benefits, And Income Taxes
Section: Chapter Questions
Problem 20E
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Question
Skysong Inc. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan.
Plan assets | $1,710,000 | |
Projected benefit obligation | 1,995,000 | |
Pension liability | 285,000 | |
Prior service cost | 246,000 |
As a result of the operation of the plan during 2020, the following additional data are provided by the actuary.
Service cost for 2020 | $135,000 | |
Settlement rate, 6% | ||
Actual return on plan assets in 2020 | 112,000 | |
Amortization of prior service cost | 24,000 | |
Expected return on plan assets | 165,000 | |
Unexpected gain from change in projected benefit obligation, due to change in actuarial predictions |
215,000 | |
Contributions in 2020 | 148,000 | |
Benefits paid retirees in 2020 | 180,000 |
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