On January 1, 2016, Burleson Corporation’s projected benefit obligation was $46

Question

On January 1, 2016, Burleson Corporation’s projected benefit obligation was $46 million. During 2016 pension benefits paid by the trustee were $6 million. Service cost for 2016 is $10 million. Pension plan assets (at fair value) increased during 2016 by $8 million as expected. At the end of 2016, there was no prior service cost and a negligible balance in net loss–AOCI. The actuary’s discount rate was 10%. Required: Determine the amount of the projected benefit obligation at December 31, 2016. (Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50). Amounts to be deducted should be indicated with a minus sign.)

Explanation / Answer

Beginning PBO $ 46,000,000.00 Less: Benefits Paid $ (6,000,000.00) Add: Service Cost $ 10,000,000.00 Add: Gain on planned assets $        800,000.00 Ending PBO $ 50,800,000.00 Answer: $50,800,000

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.