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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Not one person has gotten this correct so far - please just give the CORRECT answers to this ASAP! I will give thumbs up for correct numbers.

Transcribed Image Text: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. The
actual return was also 10% in 2021 and 2022.* A consulting firm, engaged as actuary, recommends 5% as the appropriate discount
rate. The service cost is $300,000 for 2021 and $390,000 for 2022. Year-end funding is $310,000 for 2021 and $320,000 for 2022.
No assumptions or estimates were revised during 2021.
* We assume the estimated return was based on the actual return on similar investments at the inception of the plan and that, since the
estimate didn't change, that also was the actual rate in 2022.
Required:
Calculate each of the following amounts as of both December 31, 2021, and December 31, 2022: (Enter your answers in thousands
(i.e., 200,000 should be entered as 200).)
X Answer is complete but not entirely correct.
December 31,
2021
1. Projected benefit obligation
2.
3.
4.
Plan assets
Pension expense
Net pension asset or net pension liability
$
$
$
$
0X $
0X $
300,000 $
10,000 X $
December 31,
2022
705,000 X
661,000 X
674,000 X
44,000 X
Expert Solution
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