Problem 1: Federal Delivery Service began a defined-benefit pension plan for its
ID: 2504317 • Letter: P
Question
Problem 1:
Federal Delivery Service began a defined-benefit pension plan for its employees on January 1, 2013. Pertinent data are:
Projected benefit obligation, Dec. 31, 2013 $157,000
Accumulated benefit obligation, Dec. 31, 2013 148,000
Plan assets at fair value, Dec. 31, 2013 131,000
Pension expense for 2013 143,000
Employer's cash contribution, end of 2013 131,000
Question 1: What amount should Federal report in the balance sheet at December 31, 2013?
Problem 2:
Shelby Farm has a plan under which retired employees receive medical benefits. On January 1, 2013, Shelby Farm
Explanation / Answer
1. amount to be reported in balance sheet= Plan asset+Accumulated benefit obligation
=131000+148000=279000
2. Shelby