Question

Balance Activity 2020 Fair value of plan assets, Jan. 1. 202). $5,000 Dr. Actual return on plan assets. $300 Fair value of plan assets, Dec. 31, 2020 5.625 Dr. Contributions to plan assets 450 Projected benefit obligation, Jan. 1, 2020 5,000 Cr. Service cost 500 Net pension asset (liability), Dec. 31, 2020 200 Cr. Other Discount rate 8% Expected rate of return on plan assets.. 7% Required Calculate benefits paid to retirees in 2020, b. Calculate any actuarial gain or loss on the PBO in 2020. Stars Inc. has a noncontributory defined pension plan for its employees. During 2020, the company had service Exer Calcu cost of $60,000, an expected return on plan assets of $9.280, amortization of prior service cost of $2,000, amor Expe Hint tization of net pension loss of $2.222, and benefits paid to employees of $40,000. The January 1, 2020, balance in its projected benefit obligation was $194,000. The discount rate is 10%. Required nancian expense for 2020 a.

Answer 1

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Answers le calculation of the benefits paid to retirees in 2020 particulars | Amount Opening balance $ 5000 Expected Pelurn ($5,000 * 77) $350 contribution to plan Asset $ 450 Lesy: closing balance $ 5,625 Benefit paid $ 175 .: The Benefit paid to delivees in 2020 is $175. b) calculation of the Quy actuarial gain or loss on the PBO in 2020 acturial Gain Con Loss- Amount particulars Amount Opening balance $5,000 Service cost 1$ 500 Interest Cost (5.000x8%) $400 LoreBenefit paid $175 Las closing balance [200+ 5,685] $5,825 Acturial Loss $100 Acturial Loss on the PBO in 2020 is $100 ..