Question
The Marino Company has provided you the following information pertaining to its defined benefit pension plan that was adopted on January 1, 20X1: . The
The Marino Company has provided you the following information pertaining to its defined benefit pension plan that was adopted on January 1, 20X1:
. The service cost was \$950,000 during 20X1 and \$1,045 during 20X2.
The prior service cost amortization each year was \$290,000
The to the plan was \$1,500,000 on December 31, 20X1 and $1,800,000 on December 31, 20X2. The actuarially determined discount rate and the expected return on plan assets was 10%.
. The actual return on plan assets was 9.5%. Retirement benefits pertaining to years of service prior to 20X1 were granted to the employees. The prior service cost is being amortized over the remaining ten
year life of the employees.
What is the balance of the projected benefit obligation as of December 31, 20X2?
Multiple Choice
$5,599,000
$2,090,000
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