Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2021. The provisions of the plan were not made retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assets to earn a 10% rate of return. A consulting firm, engaged as actuary, recommends 6% as the appropriate discount rate. The service cost is $150,000 for 2021 and $200,000 for 2022. Year-end funding is $160,000 for 2021 and $170,000 for 2022. No assumptions or estimates were revised during 2021.Required:Calculate each of the following amounts as of both December 31, 2021, and December 31, 2022:1. Projected benefit obligation.2. Plan assets.3. Pension expense.4. Net pension asset or net pension liability.
Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2021. The provisions of the plan were not made retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assets to earn a 10%
Required:
Calculate each of the following amounts as of both December 31, 2021, and December 31, 2022:
1. Projected benefit obligation.
2. Plan assets.
3. Pension expense.
4. Net pension asset or net pension liability.
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