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On January 1, 2021, Ivanhoe Co. had the following balances: Projected benefit obligation $7,440,000 Fair value of plan assets 7,440,000 Other data related to the
On January 1, 2021, Ivanhoe Co. had the following balances:
| Projected benefit obligation | $7,440,000 | |
| Fair value of plan assets | 7,440,000 |
Other data related to the pension plan for 2021:
| Service cost | 319,000 | |
| Contributions to the plan | 463,000 | |
| Benefits paid | 454,000 | |
| Actual return on plan assets | 472,000 | |
| Settlement rate | 9% | |
| Expected rate of return | 6% |
Questions
a)Determine the projected benefit obligation at December 31, 2021. There are no net gains or losses.
b)Determine the fair value of plan assets at December 31, 2021.
c)Calculate pension expense for 2021.
d)Prepare the journal entry to record pension expense and the contributions for 2021.
| Account Titles and Explanation | Debit | Credit |
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