Question
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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