Question: Several years ago Lewad Company established a defined benefit pension

Several years ago, Lewad Company established a defined benefit pension plan for its employees. The following information is available for 2016 in regard to its pension plan:
(1) Discount rate, 10%;
(2) Service cost, $142,000;
(3) Plan assets (1/1), $659,000;
(4) Expected return on plan assets, $65,900.
There is no amortization of prior service cost, and there is no gain or loss. On December 31, 2016, Lewad contributed $143,000 to the pension plan, resulting in a credit to Accrued/Prepaid Pension Cost of $8,200.
1. Compute the amount of Lewad's projected benefit obligation on January 1,2016.
2. Next Level How would a decrease in the discount rate affect lx wad's pension expense?

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  • CreatedOctober 05, 2015
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