Question
On January 1, 2024, Newlin Co. has the following balances: Projected benefit obligation $4,200,000 Fair value of plan assets 4,100,000 The settlement rate is 10%.
On January 1, 2024, Newlin Co. has the following balances:
Projected benefit obligation $4,200,000
Fair value of plan assets 4,100,000
The settlement rate is 10%. Other data related to the pension plan for 2024 are:
Service cost $400,000
Amortization of prior service costs due to increase in benefits 150,000
Contributions 700,000
Benefits paid 605,000
Actual return on plan assets 380,000
Amortization of net gain 40,000
The fair value of plan assets at December 31, 2024 is
a. $4,605,000.
b. $4,575,000.
c. $4,195,000.
d. $4,225,000.
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Survey of Accounting
Authors: Carl S Warren
6th edition
978-113318912, 1133189121, 978-1133189121
