Stanley-Morgan Industries adopted a de?ned bene?t pension plan on April 12, 2009. The provisions of the plan
Question:
Stanley-Morgan Industries adopted a de?ned bene?t pension plan on April 12, 2009. The provisions of the plan were not made retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assets to earn a 10% rate of return. A consulting ?rm, engaged as actuary, recommends 6% as the appropriate discount rate. The service cost is $150,000 for 2009 and $200,000 for 2010. Year-end funding is $160,000 for 2009 and $170,000 for 2010. No assumptions or estimates were revised during 2009.
Required:
Calculate each of the following amounts as of both December 31, 2009, and December 31, 2010:
1. Projected benefit obligation
2. Plan assets
3. Pension expense
4. Net pension asset/liability
Intermediate Accounting
ISBN: 978-0078025839
9th edition
Authors: J. David Spiceland, James Sepe , Mark Nelson , Wayne Thomas