For this pension question, I thought I would need to account for actual/expected return to reduce pension obligation, but the answer didn't include it and don't why? And the 80,000 pension expense was a big distractor and I wasn't sure what to do with that either. Can someone help to break this down?
On January 1, 20X2, Paul Co.’s defined benefit pension plan had plan assets with a fair value of $750,000, and a projected plan obligation of $875,000. In addition:
Actual and expected return on plan assets – 7%
Interest cost – 9%
Service costs – $24,000
Unamortized prior service cost – $120,000
Employer contributions to the plan – $45,000
Distributions to employees from the plan – $60,000
Assume that pension expense is $80,000, what will be the projected benefit obligation at December 31, 20X2?
Answer: 875000+78750+24000-60000= 917750
BEC - 75 (3x)
AUD - 78 (3x)
REG - 67, 66, Aug 1
FAR - 54, Sept 8
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