Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Flint Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2020

image text in transcribed
image text in transcribed
Flint Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2020 in which no benefits were paid. 1. The actuarial present value of future benefits earned by employees for services rendered in 2020 amounted to $56,400. 2. The company's funding policy requires a contribution to the pension trustee amounting to $144.392 for 2020 . 3. As of January 1,2020 , the company had a projected benefit obligation of $898,800, an accumulated benefit obligation of $803,800, and a debit balance of $398,900 in accumulated OCI (PSC). The fair value of pension plan assets amounted to $601,100 at the beginning of the year. The actual and expected return on plan assets was $54,200. The settlement rate was 9\%. No gains or losses occurred in 2020 and no benefits were paid. 4. Amortization of prior service cost was $50,400 in 2020. Amortization of net gain or loss was not required in 2020. Determine the amounts of the components of pension expense that should be recognized by the company in 2020. (Enter amounts that reduce pension expense with either a negative sign preceding the number es, -45 or parenthesis es. (45).) Components of Pension Expense $ \$

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Commercial Energy Auditing Referance Handbook

Authors: Steve Doty

1st Edition

0881736481, 978-0881736489

More Books

Students also viewed these Accounting questions

Question

2. Describe why we form relationships

Answered: 1 week ago

Question

5. Outline the predictable stages of most relationships

Answered: 1 week ago