Defined Benefit Pension Plan

Almost Over Co. has a defined benefit pension plan for their employees and needs your help in doing some calculations and journaling.

The rate for long-term debt is 7%. Use the following information for the task

Fair Value of plan assets, Dec 31 2018 $5,473,000

Defined Benefit Obligation, Dec 31 2018 6,649,000

Actual return on plan assets for 2019 62,600

Past Service cost amendment reduces the liability (218,200)

Actuarial revaluation dated Dec 31 20X9 is reduced (618,700)

due to change in mortality assumptions

Funding payments at year-end 20X9 525,000

Benefits paid to retirees during 20X9 120,000

Current Service Cost for 20X9 257,900

Calculate the SFP net defined benefit pension liability as of December 31, 2018.

Compute the defined benefit obligation and the fair value of plan assets on December 31, 2019.

Calculate the SFP net defined benefit pension liability as of December 31,2019