80.2K
Verified Solution
Link Copied!
| Current service cost | $ 144,000 |
| Contribution to the plan | 182,600 |
| Past service cost, effective December 31, 2020 | 60,000 |
| Actual return on plan assets | 160,000 |
| Benefits paid | 95,000 |
| Net defined benefit liability at January 1, 2020 | 20,000 |
| Plan assets at January 1, 2020 | 1,780,000 |
| Defined benefit obligation at January 1, 2020 | 1,800,000 |
| Interest/discount rate on the DBO and plan assets | 9% |
Instructions
1)Compute the balances of DBO and Plan assets at the end of December 31, 2020
2)Prepare all the necessary entries
Answer & Explanation
Solved by verified expert
