Using the data provided in BE19-21, determine the ending balance of the plan assets and indicate the funded status of
Armando Hernandez Fashions, Inc. sponsors a defined-benefit pension plan for its employees. The company’s pension trust provided the following information: Fair value of beginning plan assets, $ 569,000; projected benefit obligation at the beginning of the year, $ 678,000; service cost, $ 54,000; interest on beginning PBO, $ 56,900; actual loss on plan assets, $ 35,800 composed of expected gains of $ 50,000 and unexpected losses of $ 85,800; actuarial gains due to changes in assumptions about PBO, $ 98,543; benefit payments made to retirees, $ 29,780; and contributions made by the sponsor corporation, $ 86,500. There is no amortization necessary under the corridor approach. Compute the ending balance of the projected benefit obligation under U. S. GAAP.
This problem has been solved!
Do you need an answer to a question different from the above? Ask your question!
Step by Step Answer:
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Question Posted: November 24, 2015 05:37:19