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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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FMC Inc. provides its employees with a defined benefit pension plan. Details are as follows:
Present value defined benefit obligation (DBO) — December 31, 2020 | $7,000,000 |
Plan assets — December 31, 2020 | $5,900,000 |
Plan’s actuary confirmed that 4% is the appropriate interest rate to use. | |
Current service costs (CSC) for the year | $590,000 |
Past service costs (PSC) (improvement in benefits) — January 1, 2020 | $60,000 |
Expected ending DBO — December 31, 2020 | $7,200,000 |
Expected ending plan assets — December 31, 2020 | $6,500,000 |
Remitted to pension trustee — evenly throughout year | $670,000 |
Payments to retirees — evenly throughout year | $640,000 |
What
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