Assume the following data is presented for Oehler company for the year 2014 Pens

Question

Assume the following data is presented for Oehler company for the year 2014 Pension plan is fully founded as of 1/1/14 Settlement rate is 8%; expected earnings rate is 7%. Annual service costs for 2014..........$32000 Actual return on plan assets for 2014..........$28000 Amortization of PSC in 2014...........$21000 Contribution(funding)............ ...................$38000 Benefits paid to retirees in 2014............$25000 The end-of-year 2014 projected benefit obligation $650000 Required: A) determine the pension expense for the year 2014 B) determine the beginning of the year projected benefit obligation.

Explanation / Answer

Answer:

Pension expense: Service cost 32000 Interest on PBO 47630 Actual earnings on plan assets -28000 Amort of PSC 21000 Amort of gain/loss 0 Total pension expense 72630 PBO: Beg of year 595370 Service cost 32000 Interest on PBO 47630 Benefits paid -25000 End of year 650000

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