Zachary Motors Corp. provided the following pension plan information: Required: a. Calculate the expected value of the
Question:
Zachary Motors Corp. provided the following pension plan information:
Required:
a. Calculate the expected value of the obligation on December 31, 2021.
b. Prepare the journal entry to account for the deviation between the expected and actual value of the plan obligation at year-end.
Transcribed Image Text:
Present value of plan obligations, December 31, 2020 Plan curtailment effective January 1, 2021 Current service costs accrued evenly throughout the year Benefits paid to retirees-paid evenly throughout the year Actual value of plan obligations, December 31, 2021 Interest costs on average balance $9,844,750 2,355,750 400,000 290,000 7,750,000 4.5%
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