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28 Sep 2019
Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2018. The provisions of the plan were not made retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assets to earn a 10% rate of return. A consulting firm, engaged as actuary, recommends 6% as the appropriate discount rate. The service cost is $150,000 for 2018 and $200,000 for 2019. Year-end funding is $160,000 for 2018 and $170,000 for 2019. No assumptions or estimates were revised during 2018. Required: Calculate each of the following amounts as of both December 31, 2018, and December 31, 2019 1. Projected benefit obligation 2. Plan assets 3. Pension expense 4. Net Pension asset or net pension liability
Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2018. The provisions of the plan were not made retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assets to earn a 10% rate of return. A consulting firm, engaged as actuary, recommends 6% as the appropriate discount rate. The service cost is $150,000 for 2018 and $200,000 for 2019. Year-end funding is $160,000 for 2018 and $170,000 for 2019. No assumptions or estimates were revised during 2018. Required: Calculate each of the following amounts as of both December 31, 2018, and December 31, 2019 1. Projected benefit obligation 2. Plan assets 3. Pension expense 4. Net Pension asset or net pension liability
Nelly StrackeLv2
28 Sep 2019