Find the balance of the projected benefit obligation

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Question - On January 1, 2018, Sunland Co. has the following balances:

Projected benefit obligation $5000000

Fair value of plan assets 4400000

The settlement rate is 11%.

Other data related to the pension plan for 2018 are:

Service cost $314000

Amortization of prior service costs 69000

Contributions 354000

Benefits paid 329000

Actual return on plan assets 346000

Amortization of net gain 23400

Required - Find the balance of the projected benefit obligation at December 31, 2018?

a) $5373000.

b) $5550000.

c) $5864000.

d) $5535000.

Reference no: EM132592344

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