Given the Following Information,compute December 31,2012 Projected Benefit Obligation (PBO)and

question 63

Essay

Given the following information,compute December 31,2012 projected benefit obligation (PBO)and fair market value (FMV)of plan assets for Eagan Company.
$\begin{array}{|l|r}\hline \text { Prior service cost granted in a 2012 plan amendment } & \$ 115,000 \\\hline \text { Interest on PBO } & 73,000 \\\hline \text { Actual return on plan assets } & 101,000 \\\hline \text { Service cost } & 84,000 \\\hline \text { Contribution sent to plan trustee } & 62,000 \\\hline \text { Benefit payments to retirees } & 24,000 \\\hline \text { Liability loss (gain) } & (37,000) \\\hline \text { FMV of plan assets, January 1, 2012 } & 735,000 \\\hline \text { PBO, January 1,2012 } & 814,000\end{array}$

What amount of asset or liability will be reported on the balance sheet at December 31,2012?

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Definitions:

Foals

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Multiple-Comparison Procedures

Multiple-comparison procedures are statistical methods used to evaluate and compare multiple population means simultaneously while controlling for the error rate.

One-Way Analysis

A statistical method for testing the effect of a single factor on a response variable by comparing mean values among groups.

P-Value

In statistical hypothesis testing, the p-value is the probability of obtaining test results at least as extreme as the results actually observed, under the assumption that the null hypothesis is correct.