Question 20

On January 1, 2018, Sunland Co. has the following balances:

Projected benefit obligation $5000000

Fair value of plan assets 4400000

The settlement rate is 11%. Other data related to the pension plan for 2018 are:

Service cost$314000

Amortization of prior service costs69000

Contributions354000

Benefits paid329000

Actual return on plan assets346000

Amortization of net gain23400

The balance of the projected benefit obligation at December 31, 2018 is

a)$5373000.

b)$5550000.

c)$5864000.

d)$5535000.