Reference no: EM132885744
Question - On January 1, 2021, L Co. has the following data relating to its defined benefit plan:
Fair value of plan assets 4,400,000
Defined benefit obligation 3,000,000
Surplus 1,400,000
During the year 2021, L Co. recognized the following:
Past service cost 800,000
Current service cost 1,200,000
Benefits paid during the period 460,000
Actual return on plan assets 600,000
Contributions to the fund 1,200,000
Actuarial loss due to increase in DBO 160,000
Discount rate 12%
Assume there are no asset ceilings at the beginning and end of the year.
Based on the above data, answer the following:
1. How much is the fair value of plan assets as of December 31, 2021?
a. 5,740,000
b. 5,140,000
c. 6,200,000
d. 5,668,000
2. How much is the defined benefit obligation as of December 31, 2021?
a. 5,520,000
b. 3,940,000
c. 5,060,000
d. 4,992,000