George Corporation has a defined benefit pension plan for its employees. The following information is available for
Question:
George Corporation has a defined benefit pension plan for its employees. The following information is available for 2017:
PBO at 1/1................................................$930,000
Payments made to retirees at 12/31.....................204,000
Service cost................................................196,000
Actual return on plan assets...............................30,000
Plan contributions at 12/31..............................130,000
Fair value of plan assets at 12/31........................880,000
Amortization of prior service cost........................76,000
Discount rate...................................................10%
Expected rate of return on plan assets.......................6%
Required:
1. What was the January 1, 2017, fair value of the plan assets?
2. What is the expected dollar return on plan assets for 2017?
3. What amount of pension expense should George report for the year ended December 31, 2017?
4. What was the dollar amount of return (loss) on plan assets that was deferred during 2017?
5. Prepare the journal entries to record pension expense, the contribution, and the deferred return (loss).
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
Financial Reporting and Analysis
ISBN: 978-1259722653
7th edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer