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Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2024. 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. The actual return was also
10% in 2024 and 2025.* A consulting firm, engaged as actuary, recommends 5% as the
appropriate discount rate. The service cost is $320,000 for 2024 and $400,000 for 2025. Year-
end funding is $330,000 for 2024 and $340,000 for 2025. No assumptions or estimates were
revised during 2024. *We assume the estimated return was based on the actual return on similar
investments at the inception of the plan and that, since the estimate didn't change, that also was
the actual rate in 2025. Required: Calculate each of the following amounts as of both December
31, 2024, and December 31, 2025:

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Stanley-Morgan Industries adopted a defined benefit pension plan on .pdf

  • 1. Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2024. 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. The actual return was also 10% in 2024 and 2025.* A consulting firm, engaged as actuary, recommends 5% as the appropriate discount rate. The service cost is $320,000 for 2024 and $400,000 for 2025. Year- end funding is $330,000 for 2024 and $340,000 for 2025. No assumptions or estimates were revised during 2024. *We assume the estimated return was based on the actual return on similar investments at the inception of the plan and that, since the estimate didn't change, that also was the actual rate in 2025. Required: Calculate each of the following amounts as of both December 31, 2024, and December 31, 2025: