Sarasota 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 services rendered in 2020 amounted to $55,500. 2.   The company’s funding policy requires a contribution to the pension trustee amounting to $151,990 for 2020. 3.   As of January 1, 2020, the company had a projected benefit obligation of $893,900, an accumulated benefit obligation of $794,800, and a debit balance of $403,900 in accumulated OCI (PSC). The fair value of pension plan assets amounted to $603,500 at the beginning of the year. The actual and expected return on plan assets was $54,400. The settlement rate was 10%. No gains or losses occurred in 2020 and no benefits were paid. 4.   Amortization of prior service cost was $49,800 in 2020. Amortization of net gain or loss was not required in 2020.           Determine the amounts of the components of pension expense that should be recognized by the company in 2020.  Components of Pension Expense select a component of Pension Expense  Actual Return on Plan Assets Amortization of Prior Service CostBenefits PaidContributions to PlanExpected Return on Plan AssetsInterest on Projected Benefit ObligationService CostPension Expense   $enter a dollar amount   select a component of Pension Expense  Actual Return on Plan AssetsAmortization of Prior Service CostBenefits PaidContributions to PlanExpected Return on Plan AssetsInterest on Projected Benefit ObligationService CostPension Expense   enter a dollar amount   select a component of Pension Expense  Actual Return on Plan AssetsAmortization of Prior Service CostBenefits PaidContributions to PlanExpected Return on Plan AssetsInterest on Projected Benefit ObligationService CostPension Expense   enter a dollar amount   select a component of Pension Expense  Actual Return on Plan AssetsAmortization of Prior Service CostBenefits PaidContributions to PlanExpected Return on Plan AssetsInterest on Projected Benefit ObligationService CostPension Expense   enter a dollar amount   select a component of Pension Expense     Actual Return on Plan Assets    Amortization of Prior Service Cost    Benefits Paid    Contributions to Plan    Expected Return on Plan Assets    Interest on Projected Benefit Obligation    Service Cost    Pension Expense       $enter a total amount

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Exercise 20-11

Sarasota 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 services rendered in 2020 amounted to $55,500.
2.   The company’s funding policy requires a contribution to the pension trustee amounting to $151,990 for 2020.
3.   As of January 1, 2020, the company had a projected benefit obligation of $893,900, an accumulated benefit obligation of $794,800, and a debit balance of $403,900 in accumulated OCI (PSC). The fair value of pension plan assets amounted to $603,500 at the beginning of the year. The actual and expected return on plan assets was $54,400. The settlement rate was 10%. No gains or losses occurred in 2020 and no benefits were paid.
4.   Amortization of prior service cost was $49,800 in 2020. Amortization of net gain or loss was not required in 2020.
 
 
 
 
 
Determine the amounts of the components of pension expense that should be recognized by the company in 2020. 

Components of Pension Expense
select a component of Pension Expense
 Actual Return on Plan Assets
Amortization of Prior Service
CostBenefits PaidContributions to PlanExpected Return on Plan AssetsInterest on Projected Benefit ObligationService CostPension Expense
 
$enter a dollar amount
 
select a component of Pension Expense
 Actual Return on Plan AssetsAmortization of Prior Service CostBenefits PaidContributions to PlanExpected Return on Plan AssetsInterest on Projected Benefit ObligationService CostPension Expense
 
enter a dollar amount
 
select a component of Pension Expense
 Actual Return on Plan AssetsAmortization of Prior Service CostBenefits PaidContributions to PlanExpected Return on Plan AssetsInterest on Projected Benefit ObligationService CostPension Expense
 
enter a dollar amount
 
select a component of Pension Expense
 Actual Return on Plan AssetsAmortization of Prior Service CostBenefits PaidContributions to PlanExpected Return on Plan AssetsInterest on Projected Benefit ObligationService CostPension Expense
 
enter a dollar amount
 
select a component of Pension Expense
    Actual Return on Plan Assets    Amortization of Prior Service Cost    Benefits Paid    Contributions to Plan    Expected Return on Plan Assets    Interest on Projected Benefit Obligation    Service Cost    Pension Expense    
 
$enter a total amount
 
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