Reference no: EM132686348
On January 1, 2017, Roca Co. has the following balances:
Projected benefit obligation $3,730,000
Fair value of plan assets 3,340,000
The settlement rate is 10%. Other data related to the pension plan for 2017 are:
Service cost $334,000
Amortization of unrecognized prior service costs 78,000
Contributions 390,000
Benefits paid 150,500
Actual return on plan assets 338,100
Amortization of unrecognized net gain 33,400
Problem 1: The balance of the projected benefit obligation for Roca at December 31, 2017 is
Option 1: $4,286,500.
Option 2: $4,490,500.
Option 3: $4,061,500.
Option 4: $4,038,100.