A Company Has a Defined Benefit Pension Liability of $1,650,000

question 66

Essay

A company has a defined benefit pension liability of $1,650,000 at the end of the year.The company contributes $5,500,000 to the pension during the year and records a pension expense of $8,200,000.
Requirement:
Determine the value of the defined benefit pension liability at beginning of the year.

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Definitions:

Standard Normal Distribution

A probability distribution that has a mean of zero and a standard deviation of one, used in many areas of statistical analysis.

Symmetrically Distributed

A description of a data distribution where, on a graph, the left and right sides of the distribution are approximately mirror images of each other.

Normally Distributed

A type of continuous probability distribution characterized by a symmetrical, bell-shaped curve, where the mean, median, and mode are all equal.

Standard Deviation

A measure of the dispersion or variability in a set of values, indicating how much individual values deviate from the mean.