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ANSWERS ONLY; On January 1, 2021, S Co. has the following data relating to its defined benefit plan: Fair value of plan assets 2,000,000 Defined

ANSWERS ONLY;

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

Fair value of plan assets 2,000,000

Defined benefit obligation3,600,000

Deficit(1,600,000)

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

Past service cost600,000

Current service cost1,400,000

Benefits paid during the period720,000

Actual Return on plan assets160,000

Contributions to the fund800,000

Actuarial loss due to increase in DBO200,000

Discount rate10%

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

a.2,080,000

b.2,280,000

c.2,960,000

d.2,240,000

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

a.5,440,000

b.4,440,000

c.5,960,000

d.6,160,000

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