Funded status of barrel corporations pension plan

Reference no: EM13127313

Barrel Corporation had service and interest costs of $50,000 related to its defined benefit pension plan for the year ended December 31, Year 7. The company's unrecognized prior service cost was $200,000 at December 31, Year 6 and the average remaining service life of the company's employees was 20 years. Plan assets earned an expected and actual return of 10% during Year 7. The company made contributions to the plan of $25,000 and paid benefits of $30,000 during the year. The pension plan had plan assets with a fair value of $300,000 at December 31, Year 6. The PBO was $400,000 at December 31, Year 6, and $420,000 at December 31, Year 7. Barrel's effective tax rate is 30%. What is funded status of Barrel Corporation's pension plan at December 31, Year 7?

a) $20,000 underfunded.

b) $75,000 overfunded.

c) $95,000 underfunded.

d) $120,000 overfunded.

Reference no: EM13127313

Questions Cloud

Sketch sampling distribution and put in region of rejection : Assume H- to be true. What is the probability that this decision strategy will result in a type I error. Sketch the sampling distribution and put in the region of rejection?

What is amount of dividends common shareholders : The board of directors of Dell declared cash dividends of $70,000 in 2011 after paying $40,000 cash dividends in 2010 and $50,000 in 2009.

How many milliliters of water is required : Using the formula W = mg, how many milliliters of water with a density of 1g/mL are required to weigh 0.75 newtons and g = 9.81 m/s2?

Compute expected number of tests necessary for entire group : Assume the probability that a person has the desease is 0.09 for all people, independently of each other, and compute the expected number of tests necessary for the entire group of 154 people.

Funded status of barrel corporations pension plan : The PBO was $400,000 at December 31, Year 6, and $420,000 at December 31, Year 7. Barrel's effective tax rate is 30%. What is funded status of Barrel Corporation's pension plan at December 31, Year 7?

Explain derive the expression for the energy of a molecule : Derive the expression for the energy of a molecule, Consider the system of a gas adsorbed onto a surface. The gas can be treated as a two-dimensional ideal gas

Fbi law enforcement : The FBI Law Enforcement Bulletin Feb.1998 p.24 reported DNA profiling has advanced through a process known as Restriction Fragment Length Polymorphism (RFLP) typing, FBI scientist generate DNA profiles from six sites, or loci, on the DNA molecule.

Thinking ethically: who gains from employee development : Business management, THINKING ETHICALLY: WHO GAINS FROM EMPLOYEE DEVELOPMENT? Do employees who participate in an employee development program have an ethical obligation to remain with the employer afterward? Why or why not?

How many moles of hydrogen are present : If 3.93 g of sodium borohydride contains 2.5 × 10e23 H atoms, how many moles of H are present in 33 cm3 of sodium borohydride (of density 1.074 g/cm3)?

User Account

All Pages