Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following pension information was disclosed by PACCAR Inc. in its 2016 annual report: 2016 2015 Change in projected benefit obligation: Benefit obligation at January

The following pension information was disclosed by PACCAR Inc. in its 2016 annual report:

2016

2015

Change in projected benefit obligation:

Benefit obligation at January 1

$

2,306.0

$

2,417.4

Service cost

88.6

91.3

Interest cost

94.3

92.2

Benefits paid

(80.2

)

(121.3

)

Actuarial loss (gain)

186.4

(141.6

)

Currency translation and other

(90.6

)

(35.6

)

Participant contributions

1.1

3.6

Projected benefit obligation at December 31

$

2,505.6

$

2,306.0

Change in plan assets:

Fair value of plan assets at January 1

$

2,219.0

$

2,309.4

Employer contributions

185.7

62.9

Actual return on plan assets

254.5

0.3

Benefits paid

(80.2

)

(121.3

)

Currency translation and other

(86.0

)

(35.9

)

Participant contributions

1.1

3.6

Fair value of plan assets at December 31

$

2,494.1

$

2,219.0

  1. How much did PACCAR contribute to the pension plan during 2016?

  1. What amount of pension benefits were paid to former PACCAR employees during 2016?

  1. How did the benefits paid in (b) affect the pension obligation and the pension assets?

Benefits paid Increase Decrease Do not affect (Choose one) pension obligation

Benefits paid Increase DecreaseDo not affect (Choose one) pension assets

  1. What was the funded status of the pension plan in 2016?

Ans: $ ________________ Underfunded or Overfunded (Choose one)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Audit American Battle Monuments Commissions Financial Statements For Fiscal Years 2011 And 2010

Authors: Government Accountability Office

1st Edition

1492310883, 978-1492310884

More Books

Students also viewed these Accounting questions

Question

What are their likely reactions/objections?

Answered: 1 week ago

Question

9. Explain the relationship between identity and communication.

Answered: 1 week ago

Question

a. How do you think these stereotypes developed?

Answered: 1 week ago

Question

a. How many different groups were represented?

Answered: 1 week ago