Reference no: EM132614251

Barron Corp. (BC), a publicly accountable entity, operates a defined benefit pension plan for its employees. At December 31, 2018, the pension liability on BC's statement of financial position was $2,400,000. The pension plan assets had a fair value of $8,900,000 at December 31, 2018.

Information for the year ended December 31, 2019, is as follows:

Current service cost $ 860,000

Benefits paid to retirees 530,000

Contributions made to the pension plan assets 1,200,000

Actual return on plan assets 420,000

All amounts in the table above accrue at the end of the year. At December 31, 2019, the actuary calculated the value of the defined benefit obligation at $11,900,000. The yield on high-quality corporate bonds is 6%.

Question:

problem 1: How can calculate and show the detailed reconciliation of both the defined benefit obligation and the plan assets from the beginning to the end of 2019?