nalyzing Changes in Plan Assets and PBO The following information pertains to a company’s defined benefit plan. Balance Fair value of plan assets, Jan. 1, 2020 $2,000 Dr. Fair value of plan assets, Dec. 31, 2020 2,250 Dr. Projected benefit obligation, Jan. 1, 2020 2,000 Cr. Net pension asset (liability), Dec. 31, 2020 80 Cr. Activity 2020 Actual return on plan assets $120 Contributions to plan assets 180 Service cost 200 Other Discount rate 8% Expected rate of return on plan assets 7% Required a. Calculate benefits paid to retirees in 2020. Note: Do not use a negative sign with your answer. $Answer b. Calculate any actuarial gain or loss on the PBO in 2020. Note: Use a negative sign to indicate a loss. $Answer
nalyzing Changes in Plan Assets and PBO The following information pertains to a company’s defined benefit plan. Balance Fair value of plan assets, Jan. 1, 2020 $2,000 Dr. Fair value of plan assets, Dec. 31, 2020 2,250 Dr. Projected benefit obligation, Jan. 1, 2020 2,000 Cr. Net pension asset (liability), Dec. 31, 2020 80 Cr. Activity 2020 Actual return on plan assets $120 Contributions to plan assets 180 Service cost 200 Other Discount rate 8% Expected rate of return on plan assets 7% Required a. Calculate benefits paid to retirees in 2020. Note: Do not use a negative sign with your answer. $Answer b. Calculate any actuarial gain or loss on the PBO in 2020. Note: Use a negative sign to indicate a loss. $Answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Analyzing Changes in Plan Assets and PBO
The following information pertains to a company’s defined benefit plan.
| Balance | |
|---|---|
| Fair value of plan assets, Jan. 1, 2020 | $2,000 Dr. |
| Fair value of plan assets, Dec. 31, 2020 | 2,250 Dr. |
| Projected benefit obligation, Jan. 1, 2020 | 2,000 Cr. |
| Net pension asset (liability), Dec. 31, 2020 | 80 Cr. |
| Activity | 2020 |
|---|---|
| Actual return on plan assets | $120 |
| Contributions to plan assets | 180 |
| Service cost | 200 |
| Other | |
|---|---|
| Discount rate | 8% |
| Expected |
7% |
Required
a. Calculate benefits paid to retirees in 2020.
Note: Do not use a negative sign with your answer.
$Answer
b. Calculate any actuarial gain or loss on the PBO in 2020.
Note: Use a negative sign to indicate a loss.
$Answer
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