Question
On January 1, 2020, McGee Co. had the following balances: Projected benefit obligation $6,400,000 Fair value of plan assets 6,000,000 Other data related to the
On January 1, 2020, McGee Co. had the following balances:
Projected benefit obligation $6,400,000
Fair value of plan assets 6,000,000
Other data related to the pension plan for 2019:
contributions to the plan 400,000
Benefits paid 350,000
On 1/1/2020, prior service cost was granted having
a present value of 150,000
Actual return on plan assets 430,000
Settlement rate 9%
Expected rate of return 7%
Amortized Prior Service cost 40,000
Amortization of net gain 50,000
Service cost 250,000
How much will be reported on the balance sheet as Pension Asset/Liability at year end ?
| A. $6,480,000
| ||
| B. $400,000
| ||
| C. $159,500
| ||
| D. $559,500 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Study Guide For Use With Managerial Accounting
Authors: Ronald M. Copeland, Paul E. Dascher, Jerry R. Strawser, Robert H. Strawser
1st Edition
0873937651, 978-0873937658
