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Please assist with the following question. Thank you in advance :) Force Co. has a non-contributory, defined benefit pension plan. Pension plan data to be
Please assist with the following question. Thank you in advance :)
Force Co. has a non-contributory, defined benefit pension plan. Pension plan data to be used for accounting purposes for the 2015 year are as follows. An appropriate interest rate for long-term debt is 7%. Plan assets at market value at January 1, 2015 Actual earnings on the plan for 2015 Contributions to the plan Current service costs Benefits paid to retirees during the year Actuarial revaluation in 2015 showed an decrease in the obligation due to changes in mortality New past service cost in 2015 due to a reduction in benefits Defined benefit obligation at January 1, 2015. Required: a) Calculate the net defined pension liability at January 1, 2015. 81,000 350,000 233,000 110,000 (590,000) (185,000) b) Calculate the net defined pension liability as of December 31, 2015 by calculating the defined benefit obligation and the fair value of plan assets. Show your work. DBO, Jan. 1, 2015 Plan assets, Jan. 1,2015
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