Sheridan Corporation sponsors a defined benefit pension plan for its 100 employees. On January 1, 2023, the company's actuary provided the following information: Pension plan assets (fair value) Defined benefit obligation $1,020,000 1,410,000 The actuary calculated that the present value of future benefits earned for employee services rendered in 2023 amounted to $214,000, the December 31, 2023 defined benefit obligation was $1,831,200, and the appropriate interest or discount rate was 9%. The plan assets generated a return of $84,600 during 2023. The company funded the 2023 current service cost as well as $106,100 of the past service costs recognized in a previous year; however, no benefits were paid during the year. Sheridan is a private company and applies ASPE.
Sheridan Corporation sponsors a defined benefit pension plan for its 100 employees. On January 1, 2023, the company's actuary provided the following information: Pension plan assets (fair value) Defined benefit obligation $1,020,000 1,410,000 The actuary calculated that the present value of future benefits earned for employee services rendered in 2023 amounted to $214,000, the December 31, 2023 defined benefit obligation was $1,831,200, and the appropriate interest or discount rate was 9%. The plan assets generated a return of $84,600 during 2023. The company funded the 2023 current service cost as well as $106,100 of the past service costs recognized in a previous year; however, no benefits were paid during the year. Sheridan is a private company and applies ASPE.
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 13E
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Sheridan Corporation sponsors a defined benefit pension plan for its 100 employees. On January 1, 2023, the company's actuary
provided the following information:
Pension plan assets (fair value)
Defined benefit obligation
$1,020,000
1,410,000
The actuary calculated that the present value of future benefits earned for employee services rendered in 2023 amounted to
$214,000, the December 31, 2023 defined benefit obligation was $1,831,200, and the appropriate interest or discount rate was 9%.
The plan assets generated a return of $84,600 during 2023. The company funded the 2023 current service cost as well as $106,100 of
the past service costs recognized in a previous year; however, no benefits were paid during the year. Sheridan is a private company and
applies ASPE.
(a)
Prepare a schedule that indicates what the plan's surplus or deficit is at December 31, 2023.
$
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