Task:
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Brunson Corporation Pension Plan
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Information for Current Fiscal Year
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Beginning balance of plan assets at market value
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$1,560,000
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Actual return on plan assets
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210,000
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Employer's contribution
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150,000
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Distributions to beneficiaries
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75,000
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Service cost
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125,000
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Interest cost
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156,000
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Changes in benefits and assumptions
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35,000
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Beginning balance of the PBO
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1,580,000
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Problem 1: What is the ending balance of plan assets?
- $1,770,000
- $1,845,000
- $1,920,000
- $1,955,000
Problem 2: What is the ending balance of the projected benefit obligation (PBO)?
- $1,730,000
- $1,821,000
- $1,896,000
- $1,971,000
Problem 3: At the beginning of the year, the pension plan is:
- overfunded by $20,000.
- overfunded by $35,000.
- underfunded by $20,000.
- underfunded by $35,000.
Problem 4: The underfunding or overfunding of the plan at year end will be disclosed in the:
- balance sheet of the plan sponsor.
- balance sheet of the plan trustee at cost.
- income statement of the plan sponsor
- notes to the financial statements of the plan sponsor.