Question
Blossom Corp. sponsors a defined-benefit pension plan for its employees. On January 1, 2021, the following balances related to this plan. Plan assets (fair value)
Blossom Corp. sponsors a defined-benefit pension plan for its employees. On January 1, 2021, the following balances related to this plan.
Plan assets (fair value) $670,000
Projected benefit obligation 720,000
Pension asset/liability 50,000 Cr.
Prior service cost 87,000 OCI - Loss 77,000
As a result of the operation of the plan during 2021, the actuary provided the following additional data at December 31, 2021.
Service cost for 2021 $82,000
Actual return on plan assets in 2021 54,840
Amortization of prior service cost 24,600
Contributions in 2021 127,000
Benefits paid retirees in 2021 92,000
Settlement rate 7 %
Expected return rate 8 %
Average remaining service life of active employees 10 years
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