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Calculate the funded status of the plan on december

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Reference no: EM132601819

Fernando's Furniture Inc. sponsors a defined benefit pension plan for its employees. The plan's trustee reports the following information for calendar 2014:

Defined benefit obligation, Jan 1 $240,00 0

Fair value of plan assets, Jan 1 180,000

Current service cost 80,000

Actual & expected return on plan assets 21,000

Contributions 70,000

Benefits paid to retirees 120,000

Interest (discount) rate 10%

Past service costs (as of Jan 1) 10,000

The corporation uses the immediate recognition approach under ASPE.

Instructions

Question a. Calculate the amount of pension expense for 2014, and prepare the required adjusting journal entries.

Question b. Calculate the funded status of the plan on December 31, 2014.

Reference no: EM132601819

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