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    altosal's Avatar
    altosal Posts: 33, Reputation: 1
    Junior Member
    		  
    #1

    Dec 8, 2010, 12:00 PM
    Accounting 4
    Beginning balance of plan assets at market value $1,560,000
    Actual return on plan assets $210,000
    Employer's contribution $150,000
    Distribution to beneficiaries $75,000
    Service cost $125,000
    Interest cost $156,000
    Changes in benefits and assumptions $35,000
    Beginning balance of the PBO $1,580,000

    What is the ending balance of plan assets and PBO?
    How much was the pension overfunded/underfunded?
    altosal's Avatar
    altosal Posts: 33, Reputation: 1
    Junior Member
    		  
    #2

    Dec 9, 2010, 05:18 AM
    $1,845,000 and $1,971,000
    Underfunded
    altosal's Avatar
    altosal Posts: 33, Reputation: 1
    Junior Member
    		  
    #3

    Dec 9, 2010, 05:26 AM
    Comment on altosal's post
    I'm fighting the flu so my answer might be under the weather... let's wait and see what the expert says.
    Just Looking's Avatar
    Just Looking Posts: 1,610, Reputation: 480
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    #4

    Dec 9, 2010, 09:13 AM

    The $1,845,000 is correct. In the PBO you included Employers Contribution which is not part of the equation. That will affect your answer re under/over funded.
    altosal's Avatar
    altosal Posts: 33, Reputation: 1
    Junior Member
    		  
    #5

    Dec 9, 2010, 12:21 PM
    Ending PBO $1,821,000
    Overfunded
    Just Looking's Avatar
    Just Looking Posts: 1,610, Reputation: 480
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    #6

    Dec 9, 2010, 12:22 PM

    Right.
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