On January 1, 2020, Indigo Company has the following defined benefit pension plan balances. Projected benefit obligation $4,571,000 Fair value of plan assets 4,210,000 The interest (settlement) rate applicable to the plan is 10%. On January 1, 2021, the company amends its pension agreement so that prior service costs of $492,000 are created. Other data related to the pension plan are as follows. 2020 2021 Service cost $152,000 $179,000 Prior service cost amortization 89,000 Contributions (funding) to the plan 236,000 285,000
On January 1, 2020, Indigo Company has the following defined benefit pension plan balances. Projected benefit obligation $4,571,000 Fair value of plan assets 4,210,000 The interest (settlement) rate applicable to the plan is 10%. On January 1, 2021, the company amends its pension agreement so that prior service costs of $492,000 are created. Other data related to the pension plan are as follows. 2020 2021 Service cost $152,000 $179,000 Prior service cost amortization 89,000 Contributions (funding) to the plan 236,000 285,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 7E
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