(Computation of Actual Return, Gains and Losses, Corridor Test, and Pension Expense) Erickson Company sponsors a defined...
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(Computation of Actual Return, Gains and Losses, Corridor Test, and Pension Expense) Erickson Company sponsors a defined benefit pension plan. The corporation's actuary provides the following information about the plan.
(a) Compute the actual return on the plan assets in 2010.
(b) Compute the amount of the other comprehensive income (G/L) as of December 31, 2010. (Assume the January 1, 2010, balance was zero.)
(c) Compute the amount of net gain or loss amortization for 2010 (corridor approach).
(d) Compute pension expense for2010.
Transcribed Image Text:
Vested benefit obligation Accumulated benefit obligation Projected benefit obligation Plan assets (fair value) Settlement rate and expected rate of return Pension asset/liability Service cost for the year 2010 Contributions (funding in 2010) Benefits paid in 2010 January 1, 2010 $1,500 1,900 2,500 1,700 800 December 31, 2010 $1,900 2,730 3,300 2,620 10% ? 400 700 200
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a Actual Return Ending Beginning Contributions Benefits Fair value of plan assets December 31 2010 D...View the full answer
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Related Book For
Intermediate Accounting
ISBN: 978-0470423684
13th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
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