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ANSWERS ONLY: On January 1, 2021, L Co. has the following data relating to its defined benefit plan: Fair value of plan assets4,400,000 Defined benefit

ANSWERS ONLY:

On January 1, 2021, L Co. has the following data relating to its defined benefit plan:

Fair value of plan assets4,400,000

Defined benefit obligation3,000,000

Surplus1,400,000

During the year 2021, L Co. recognized the following:

Past service cost800,000

Current service cost1,200,000

Benefits paid during the period460,000

Actual return on plan assets600,000

Contributions to the fund1,200,000

Actuarial loss due to increase in DBO160,000

Discount rate 12%

Assume there are no asset ceilings at the beginning and end of the year.

Based on the above data, answer the following:

1. How much is the fair value of plan assets as of December 31, 2021?

a.5,740,000

b.5,140,000

c.6,200,000

d.5,668,000

2. How much is the defined benefit obligation as of December 31, 2021?

a.5,520,000

b.3,940,000

c.5,060,000

d.4,992,000

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