(Solution) - The following information relates to a firm s pension plan Prior service -(2025 Original AI-Free Solution)

Paper Details

The following information relates to a firm's pension plan.
Prior service cost due to 2013 amendment................................$ 60,000
PBO, January 1, 2013......................................................1,000,000
FMV, January 1, 2013......................................................1,200,000
Settlement interest rate..............................................................7%
Expected return on plan assets......................................................9%
Actual return on plan assets.........................................................8%
Liability loss (gain)............................................................(40,000)
Contribution to plan trustee (made at end of year)........................100,000
Service cost.....................................................................115,000
Payments to retired employees................................................30,000
REQUIRED
a. Compute the December 31, 2013, PBO and FMV of pension assets.
b. Compute 2013 pension expense.
c. Use the financial statements effects template to show the effects on the 2013 financial statements.