Homework Answers
Difference between defined benefit obligation and fair value of plan assets is reported on balance sheet.
Defined benefit obligation is $335,000 which is more than $245,000 fair value of plan assets. Net result is pension liability.
Pension liability = defined benefit obligation - fair value of plan assets = $335,000 - $245,000 = $90,000.
Answer is pension liability and $90,000.
Actuarial gain is part of pension expense. Vested benefits amount is reported in the notes to account.
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Bonita Company sponsors a defined benefit pension plan. The
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plan.
January 1,
2017
December
31, 2017
Vested benefit
obligation
$1,390
$1,750
Accumulated benefit
obligation
1,750
2,850
Projected benefit
obligation
2,350
3,540
Plan assets (fair value)
1,820
2,550
Settlement rate and expected
rate of return
10
%
Pension asset/liability
530
?
Service cost for the year
2017
440
Contributions (funding in
2017)
720
Benefits paid in 2017
220
(a) Compute the actual return...
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corporation’s actuary provides the following information about the
plan.
January 1,
2017
December
31, 2017
Vested benefit
obligation
$1,390
$1,750
Accumulated benefit
obligation
1,750
2,850
Projected benefit
obligation
2,350
3,540
Plan assets (fair value)
1,820
2,550
Settlement rate and expected
rate of return
10
%
Pension asset/liability
530
?
Service cost for the year
2017
440
Contributions (funding in
2017)
720
Benefits paid in 2017
220
(a) Compute the actual return...
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