Question
The actuaries for Interconnect Cable Company provided its accountants with the following information (in thousands of dollars) related to the companys pension plan: December 31,
The actuaries for Interconnect Cable Company provided its accountants with the following information (in thousands of dollars) related to the companys pension plan:
December 31, 2014: | |
Increase in PBO arising from plans amendment | $684 |
January 1, 2015: | |
PBO | $2,700 |
Fair value of the pension fund | $1,860 |
Market-related value of the pension fund (five-year weighted average) | $1,600 |
Obligation discount rate | 10% |
Average service life for amortization of deferred gain and prior service costs | 14 years |
Deferred pension gainprior year | $70 |
Expected rate of return | 9% |
For year 2015: | |
Benefit payments to retirees | $173 |
Contributions to pension plan | 290 |
December 31, 2015: | |
PBO | $2,917 |
Fair value of pension plan assets | 2,137 |
Instructions: Based on the data provided, prepare a pension work sheet for Interconnect Cable Company for 2015. The five-year weighted-average value of plan assets is used in computing the expected return.
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