Question
The Royal Corp has a defined benefit pension plan. As of January 1, 2019, the company had a Projected Benefit Obligation (PBO) of $80 million
The Royal Corp has a defined benefit pension plan. As of January 1, 2019, the company had a Projected Benefit Obligation (PBO) of $80 million and Plan Assets of $75 million. The beginning balance of Prior Service Cost AOCI is $2.5 million and the Net Gain AOCI beginning balance is $1.2 million (2019 amortization: $.14 million).
The following data relates to the plan for the companys current fiscal year, ended December 31, 2019.
$s in millions Actual Return on Assets $6.2 Amortization of Prior Service Cost .7 Service Cost 3.2 Benefits Paid to Retirees 4.1 Contribution 3.8 Prior service cost amortization .7
Expected Rate of Return 7.0% Discount Rate 5.5%
REQUIRED: Complete the pension worksheet (provided in the Excel file) for the current fiscal year, 2019.
Please show computations if possible & be clear, Thank you!
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