Question

At the beginning of the year, Klein Company's pension plan showed pension plan assets of $4 million and a PBO of $4.5 million; unamortized prior service cost of $500,000; and no unamortized gains or losses. During the year, service cost was $310,000; $400,000 was paid to retirees; and the company contributed $340,000 to the plan. The expected return on plan assets was 8% and the discount rate estimate was 6%. The plan assets earned an actual return of 5%. The average remaining service period is 10 years. At the end of the year, the balance of the pension plan assets will be____________________

Answer 1

Answer:

At the end of the year, the balance of the pension plan assets will be $4,140,000.

Explanation:

4 million + actual return 200,000 + contribution to plan 340,000 - paid to retirees 400,000 = $4,140,000