ZuoTi.Pro
Question

A company's defined benefit pension plan had a PBO of $273,000 on January 1, 2018. During 2018, pension benefits paid we...

A company's defined benefit pension plan had a PBO of $273,000 on January 1, 2018. During 2018, pension benefits paid were $41,000. The discount rate for the plan for this year was 12%. Service cost for 2018 was $83,000. Plan assets (fair value) increased during the year by $51,000. The amount of the PBO at December 31, 2018, was:

  • $347,760.

  • None of these answer choices are correct.

  • $232,000.

  • $388,760.

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

A. $347,760

PBO/1/1 $273,000
Service cost $83,000
Interest cost ($273,000 × 12%) $32,760
Benefits paid ($41,000)
PBO 12/31 $347,760
1 0
Add a comment
Know the answer?
Add Answer to:
A company's defined benefit pension plan had a PBO of $273,000 on January 1, 2018. During 2018, pension benefits paid we...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Pearsall Company's defined benefit pension plan had a PBO of $270,000 on January 1, 2021. During...

    Pearsall Company's defined benefit pension plan had a PBO of $270,000 on January 1, 2021. During 2021, pension benefits paid were $48,000. The discount rate for the plan for this year was 11%. Service cost for 2021 was $86,000. Plan assets (fair value) increased during the year by $51,000. The amount of the PBO at December 31, 2021, was: Multiple Choice $222,000. $385,700. $337,700. None of these answer choices are correct

  • A company's defined benefit pension plan had a PBO of $265,000 on January 1, 2009. During 2009, pension benefits paid we...

    A company's defined benefit pension plan had a PBO of $265,000 on January 1, 2009. During 2009, pension benefits paid were $40,000. The discount rate for the plan for this year was 10%. Service cost for 2009 was $80,000. Plan assets (fair value) increased during the year by $45,000. The amount of the PBO at December 31, 2009, was

  • The following information is related to the defined benefit pension plan of Simpson Company for the...

    The following information is related to the defined benefit pension plan of Simpson Company for the year: Service cost $ 92,000 Contributions to pension plan 143,000 Benefits paid to retirees 119,000 Plan assets (fair value), January 1 548,000 Plan assets (fair value), December 31 661,000 Actual return on plan assets 89,000 PBO, January 1 835,000 PBO, December 31 891,500 Discount rate 10 % Long-term expected return on plan assets 9 % Assuming no other relevant data exist, what is the...

  • On January 1, 2018, Burleson Corporation’s projected benefit obligation was $36 million. During 2018 pension benefits...

    On January 1, 2018, Burleson Corporation’s projected benefit obligation was $36 million. During 2018 pension benefits paid by the trustee were $8 million. Service cost for 2018 is $16 million. Pension plan assets (at fair value) increased during 2018 by $10 million as expected. At the end of 2018, there was no prior service cost and a negligible balance in net loss–AOCI. The actuary’s discount rate was 10%. Required: Determine the amount of the projected benefit obligation at December 31,...

  • Electronic Distribution has a defined benefit pension plan. Characteristics of the plan during 2018 are as...

    Electronic Distribution has a defined benefit pension plan. Characteristics of the plan during 2018 are as follows: ($ millions) PBO balance, January 1 $ 520 Plan assets balance, January 1 250 Service cost 95 Interest cost 65 Gain from change in actuarial assumption 34 Benefits paid (44) Actual return on plan assets 17 Contributions 2018 85 The expected long-term rate of return on plan assets was 8%. There were no AOCI balances related to pensions on January 1, 2018, but...

  • American Metals, Inc. has a defined benefit pension plan. Characteristics of the plan during 2018 follow...

    American Metals, Inc. has a defined benefit pension plan. Characteristics of the plan during 2018 follow (in $-millions): PBO balance, January 1 480 Plan assets balance, January 1 300 Service cost 75 Interest cost 45 Gain from change in actuarial assumption 22 Benefits paid (36) Actual return on plan assets 20 2018 contributions 60 The expected long-term rate of return on plan assets was 8%. There were no AOCI balances related to pensions on January 1, 2018, but at the...

  • Electronic Distribution has a defined benefit pension plan. Characteristics of the plan during 2018 are as follows:...

    Electronic Distribution has a defined benefit pension plan. Characteristics of the plan during 2018 are as follows: ($ millions) PBO balance, January 1 $ 500 Plan assets balance, January 1 450 Service cost 85 Interest cost 55 Gain from change in actuarial assumption 30 Benefits paid (40) Actual return on plan assets 20 Contributions 2018 75 The expected long-term rate of return on plan assets was 6%. There were no AOCI balances related to pensions on January 1, 2018, but...

  • Herring Wholesale Company has a defined benefit pension plan. On January 1, 2018, the following pension related data we...

    Herring Wholesale Company has a defined benefit pension plan. On January 1, 2018, the following pension related data were available: Net gain-AOCI Accumulated benefit obligation Projected benefit obligation Fair value of plan assets Average remaining service period of active employees (expected to remain constant for the next several years) ($ in 000 s) $240 1,370 1,800 1,300 12years The rate of return on plan assets during 2018 was 8%, although it was expected to be 10%. The actuary revised assumptions...

  • Carla Vista Corporation sponsors a defined benefit pension plan and reports under IFRS. On January 1,...

    Carla Vista Corporation sponsors a defined benefit pension plan and reports under IFRS. On January 1, 2020, the company reported plan assets of $1,900 and a defined benefit obligation of $2,000 (all amounts in thousands of dollars). During 2020, the current service cost was determined to be $171, the discount rate on the DBO and plan assets was 6%, while the actual return on the plan assets for the year was $105. Carla Vista made contributions of $175 into the...

  • ABC Corporation has provided the following information regarding their defined benefit pension plan for the year 2018: C...

    ABC Corporation has provided the following information regarding their defined benefit pension plan for the year 2018: Current service cost $ 235,000 Contribution to the plan 262,500 Past service cost, effective December 31, 2018 50,000 Actual return on plan assets 160,000 Benefits paid 100,000 Net defined benefit liability at January 1, 2018 400,000 Plan assets at January 1, 2018 1,600,000 Defined benefit obligation at January 1, 2018 2,000,000 Interest/discount rate on the DBO and plan assets 10% Required: 1) Prepare...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT