Solve_ch20 - Name: _ Problem chapter 20 1. Instr uctio ns...

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Name: __________________________ Problem chapter 20
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1. Instr uctio ns (a) Deter mine the projec ted benefi t oblig ation at Dece mber 31, 2010. There are no net gains or losses . (b) Deter mine the fair value of plan assets at Dece mber 31, 2010. (c) Calcu late pensi on expen se for Pension plan calculations and journal entry. On January 1, 2010, Redman Co. had the following balances: Projected benefit obligation $7200,000 / 900,000 Fair value of plan assets 7100,000 / 750,000 Other data related to the pension plan for 2010: Service cost 300,000 / 340,000 Unrecognized prior service cost -0- Contributions to the plan 420,000 / 230,000 Benefits paid 450,000 / 100,000 Actual return on plan assets 432,000 / 50,000 Settlement rate 8% Expected rate of return 6%
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Items Pension expenses cash PSC Gain/Loss pension asset/liability projected benefit obligation plan assets Jan 1 2010 (150,000) (900,000) 750,000 Service costs 340,000 (340,000) Interest cost 72,000 (72,000) Asset return (50,000) 50,000
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Solve_ch20 - Name: _ Problem chapter 20 1. Instr uctio ns...

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