Davison Company has a noncontributory defined benefit pension plan for its employees. During 2019, the pension plan
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Davison Company has a noncontributory defined benefit pension plan for its employees. During 2019, the pension plan has a discount rate of 8%, service cost of $98,000, plan assets as of 1/1/19 of $432,000, and an expected return on plan assets of $34,560. On December 31, 2019, Davison contributed $90,000 to the pension plan, resulting in a credit to Accrued/Prepaid Pension Cost of $6,300. What is the amount of the projected benefit obligation on January 1, 2019?
a. $332,000
b. $345,600
c. $410,750
d. $432,000
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal... Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...
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Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1337788281
3rd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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