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Hello! Could you help me solve this pension problem? Pension Problems Below is selected 2015 data about ABC Corporation's defined benefit plan: Plan assets balance,
Hello! Could you help me solve this pension problem?
Pension Problems Below is selected 2015 data about ABC Corporation's defined benefit plan: Plan assets balance, January 1 $ 950,000 Service cost 210,000 Contributions 2015 92,000 Benefits paid 60,000 PBO balance, January 1 1,200,000 Gain from change in actuarial assumptions 160,000 Actual return on plan assets 50,000 The expected long-term rate of return on plan assets was 11%. There were no AOCI balances related to pensions on January 1, 2015. On January 2, 2015, ABC Corporation amended the pension formula creating a prior service cost of $225,000. The employee base is expected to work, on average, 15 additional years. The actuary advised that the appropriate discount rate was 6%. The company prepares its financial statements according to US GAAP Standards, and has a December 31 fiscal year end. Please provide your response to the following questions 1. What is 2015 pension expense? (1 point) 2. Prepare the journal entry to record the following for 2015: (1 points each) a. pension expense b. gains or losses c. prior service cost d. funding e. payment of retiree benefits. 3. What will ABC report as a net pension asset or liability in its 2015 balance sheetStep by Step Solution
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