Question - On January 1, 2018, Newlin Co. has the following balances:
Projected benefit obligation $3,500,000
Fair value of plan assets 3,000,000
The settlement rate is 10%. Other data related to the pension plan for 2018 are:
Service cost $300,000
Amortization of prior service costs due to increase in benefits 100,000
Contributions 500,000
Benefits paid 225,000
Actual return on plan assets 395,000
Amortization of net gain 30,000
The balance of the projected benefit obligation at December 31, 2018 is
$4,150,000
$3,925,000
$3,900,000
$3,850,000