Defined benefit obligation, 1/1/20, accounting basis, before plan amendment $295,000 Fair value of plan assets, 1/1/20 3,27,000 Current service cost 63,900 Discount rate 10% Actual return on plan assets 8% Contributions (funding) 78,600 Benefits paid to retirees 42,80
Defined benefit obligation, 1/1/20, accounting basis, before plan amendment $295,000 Fair value of plan assets, 1/1/20 3,27,000 Current service cost 63,900 Discount rate 10% Actual return on plan assets 8% Contributions (funding) 78,600 Benefits paid to retirees 42,80
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 6E
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Question
The following information is available for ABC Corporations' pension plan for the 2020 fiscal year:
Defined benefit obligation, 1/1/20, accounting basis, before plan amendment $295,000
Fair value of plan assets, 1/1/20 3,27,000
Current service cost 63,900
Discount
Actual return on plan assets 8%
Contributions (funding) 78,600
Benefits paid to retirees 42,800
On January 1, 2020, ABC amended its pension plan, resulting in the past service costs with a present value of $139,900. ABC follows ASPE.
1)Calculate the defined benefit expense for 2020
2)Prepare
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