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The following amounts have been abstracted from a firms pension work paper for the year ended December 31, 2021: Plan assets 1/1/21 $ 715,000 Projected
The following amounts have been abstracted from a firm’s pension work paper for the year ended December 31, 2021:
- Plan assets 1/1/21 $ 715,000
- Projected benefit obligation 1/1/21 810,000
- Service cost 84,000
- Interest cost 48,600
- Expected return 82,500
- Actual return 63,600
- Amortization of prior service cost 7,500
- Employer contribution 65,000 Pensions paid 112,500
- Amortization of unexpected loss 900
Increase in projected benefit obligation at 12/31/21 resulting from actuarial changes 45,000
1. At December 31, 2021, what is the fair value of pension assets?
A. $731,100.
B. $743,200.
C. $658,500.
D. $724,800.
The following amounts have been abstracted from a firm’s pension work paper for the year ended December 31, 2021:
- Plan assets 1/1/21 $ 715,000
- Projected benefit obligation 1/1/21 810,000
- Service cost 84,000
- Interest cost 48,600
- Expected return 82,500
- Actual return 63,600
- Amortization of prior service cost 7,500
- Employer contribution 65,000 Pensions paid 112,500
- Amortization of unexpected loss 900
Increase in projected benefit obligation at 12/31/21 resulting from actuarial changes 45,000
1. At December 31, 2021, what is the fair value of pension assets?
A. $731,100.
B. $743,200.
C. $658,500.
D. $724,800.
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