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Problem 20-7 Teal Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2017, the following balances related to this plan. Plan
Problem 20-7 Teal Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2017, the following balances related to this plan. Plan assets (market-related value) $477,000 Projected benefit obligation 669,000 Pension asset/liability 192,000 Cr. Prior service cost 89,000 Net gain or loss (debit) 92,000 As a result of the operation of the plan during 2017 the actuary provided the following additional data for 2017. Service cost for 2017 $96,000 Settlement rate, 9%; expected return rate, 10% 44,000 Actual return on plan assets in 2017 Amortization of prior service cost 26,000 Contributions in 2017 122,000 Benefits paid retirees in 2017 76,000 Average remaining service life of active employees 10 years
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