The following information relates to the defined benefit pension plan of Mascare Company January 1, 2013 PBO $9,000 FVPF $11,000 Expected return on plan assets 8 Obligation discount rate 10 For the year ended December 31, 2013 Service cost $1,200 Benefit payments to retirees 500 Contributions to pe...

Mascare Company Pension Work Sheet for 2013 Positive amounts ...

The following information relates to the defined benefit pension plan of Mascare Company. January 1, 2013: PBO

Question:

The following information relates to the defined benefit pension plan of Mascare Company.
January 1, 2013:
PBO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9,000
FVPF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $11,000
Expected return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8%
Obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10%
For the year ended December 31, 2013:
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,200
Benefit payments to retirees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500
Contributions to pension fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
Actual return on plan assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500
Prepare a pension work sheet for Mascare Company for 2013.
Discount Rate
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...