FNBK 306 Managerial Finance Assignment Problem

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FNBK 306 Managerial Finance Assignment - Buena Vista University, USA

Question - Stellar Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2017, the following balances relate to this plan.

Plan assets $498,300

Projected benefit obligation 614,700

Pension asset/liability 116,400

Accumulated OCI (PSC) 96,900 Dr.

As a result of the operation of the plan during 2017, the following additional data are provided by the actuary.

Service cost $92,500

Settlement rate, 9%

Actual return on plan assets 54,200

Amortization of prior service cost 18,100

Expected return on plan assets 51,200

Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions 74,200

Contributions 97,200

Benefits paid retirees 82,600

Required - Using the data above, compute pension expense for Stellar Corp. for the year 2017 by preparing a pension worksheet. (Enter all amounts as positive.)

Reference no: EM132435862

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