The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2021...
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The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2021 and 2022 are presented below ($ in millions): Information Provided by Pension Plan Actuary: a. Projected benefit obligation as of December 31, 2020 = $1,800. b. Prior service cost from plan amendment on January 2, 2021 = $400 (straight-line amortization for 10-year average remaining service period). c. Service cost for 2021 = $520. d. Service cost for 2022 = $570. e. Discount rate used by actuary on projected benefit obligation for 2021 and 2022 = 10%. f. Payments to retirees in 2021 = $380. g. Payments to retirees in 2022 $450. h. No changes in actuarial assumptions or estimates. i. Net gain-AOCI on January 1, 2021 = $230. j. Net gains and losses are amortized for 10 years in 2021 and 2022. Information Provided by Pension Fund Trustee: a. Plan asset balance at fair value on January 1, 2021 = $1,600. b. 2021 contributions = $540. c. 2022 contributions = $590. d. Expected long-term rate of return on plan assets = 12%. The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2021 and 2022 are presented below ($ in millions): Information Provided by Pension Plan Actuary: a. Projected benefit obligation as of December 31, 2020 = $1,800. b. Prior service cost from plan amendment on January 2, 2021 = $400 (straight-line amortization for 10-year average remaining service period). c. Service cost for 2021 = $520. d. Service cost for 2022 = $570. e. Discount rate used by actuary on projected benefit obligation for 2021 and 2022 = 10%. f. Payments to retirees in 2021 = $380. g. Payments to retirees in 2022 $450. h. No changes in actuarial assumptions or estimates. i. Net gain-AOCI on January 1, 2021 = $230. j. Net gains and losses are amortized for 10 years in 2021 and 2022. Information Provided by Pension Fund Trustee: a. Plan asset balance at fair value on January 1, 2021 = $1,600. b. 2021 contributions = $540. c. 2022 contributions = $590. d. Expected long-term rate of return on plan assets = 12%.
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