Question
Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2016. The provisions of the plan were not made retroactive to prior years. A
Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2016. The provisions of the plan were not made retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assets to earn a 10% rate of return. A consulting firm, engaged as actuary, recommends 6% as the appropriate discount rate. The service cost is $250,000 for 2016 and $340,000 for 2017. Year-end funding is $260,000 for 2016 and $270,000 for 2017. No assumptions or estimates were revised during 2016. |
Required: |
Calculate each of the following amounts as of both December 31, 2016, and December 31, 2017: (Enter your answers in thousands (i.e., 200,000 should be entered as 200).) |
Dec 31st 2016 Dec 31st 2017 a. Projected benefiit obligation |
b. plan assets
c. pension expense. d. Net pension asset or net pension liability
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