Pharoah Corp., a company whose stock is publicly traded, provides a noncontributory defined-benefit pension plan for its employees. The company's actuary has provided the following information for the year ended December 31, 2021: Projected benefit obligation $ 766000 Accumulated benefit obligation 577000 Fair value of plan assets 900000 Service cost 260000 Interest on projected benefit obligation 28000 Amortization of prior service cost 68000 Expected and actual return on plan assets 94500 The market-related asset value equals the fair value of plan assets. No contributions have been made for 2021 pension cost. In its December 31, 2021 balance sheet, Pharoah should report a pension asset / liability of Pension asset of $134000 Pension asset of $900000 Pension liability of $766000 Pension liability of $577000
Pharoah Corp., a company whose stock is publicly traded, provides a noncontributory defined-benefit pension plan for its employees. The company's actuary has provided the following information for the year ended December 31, 2021: Projected benefit obligation $ 766000 Accumulated benefit obligation 577000 Fair value of plan assets 900000 Service cost 260000 Interest on projected benefit obligation 28000 Amortization of prior service cost 68000 Expected and actual return on plan assets 94500 The market-related asset value equals the fair value of plan assets. No contributions have been made for 2021 pension cost. In its December 31, 2021 balance sheet, Pharoah should report a pension asset / liability of Pension asset of $134000 Pension asset of $900000 Pension liability of $766000 Pension liability of $577000
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 4E
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Pharoah Corp., a company whose stock is publicly traded, provides a noncontributory defined-benefit pension plan for its employees. The company's actuary has provided the following information for the year ended December 31, 2021:
| Projected benefit obligation | $ | 766000 | |
| Accumulated benefit obligation | 577000 | ||
| Fair value of plan assets | 900000 | ||
| Service cost | 260000 | ||
| Interest on projected benefit obligation | 28000 | ||
| Amortization of prior service cost | 68000 | ||
| Expected and actual return on plan assets | 94500 |
The market-related asset value equals the fair value of plan assets. No contributions have been made for 2021 pension cost. In its December 31, 2021 balance sheet, Pharoah should report a pension asset / liability of
|
|
Pension asset of $134000 |
|
|
Pension asset of $900000 |
|
|
Pension liability of $766000 |
|
|
Pension liability of $577000 |
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