Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2011.  The provisions of the plan were not made retroactive to prior years.  A local bank, engaged as trustee for the plan assets, expects plan assets to earn a 10% rate of return.  A consulting firm, engaged as actuary, recommends 6% as the appropriate discount rate.  The service cost is 150,000 for 2011 and 200,000 for 2012.  Year-end funding is 160,000 for 2011 and 170,000 for 2012.  No assumptions or estimates were revised during 2011.

 

Required:

 

Calculate each of the following amounts as of both December 31, 2011, and December 31, 2012.

 

Projected benefit obligation

 

Plan assets

 

Pension expense

 

Netpension asset or net pension liability

 

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      p17-6_stanley_morgan.xlsx