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Richards Romero Engineering created a defined benefit pension plan on 1.1.2021. The service cost for each year of 2021 and 2022 was $630,000. The interest
Richards Romero Engineering created a defined benefit pension plan on 1.1.2021. The service cost for each year of 2021 and 2022 was $630,000. The interest rate is 12%. Both the actual and expected return on plan assets are 10% for both years. Richards Romero funded the plan in the amount of $430,000 on 1.1.2021 and 1.1.2022. How much is the pension liability at 12.31.2022?
a) $385,300
b) $493,500
c) 417,900
d) $ 342,300
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