Erickson plc sponsors a defined benefit pension plan. The company’s actuary provides the following information about the plan.

Instructions

a. Compute the actual return on the plan assets in 2022.

b. Compute the amount of net gain or loss for 2022.

c. Compute the amount of the other comprehensive income (G/L) as of December 31, 2022. Assume the January 1, 2022, balance was zero.

Transcribed Image Text:

January 1, December 31, 2022 2022 Vested benefit obligation £1,500 £1,900 Accumulated benefit obligation 1,900 2,730 Defined benefit obligation 2,500 3,300 Plan assets (fair value) 1,700 2,620 Discount (interest) rate 10% Pension liability 800 ? Service cost for the year 2022 400 Contributions (funding in 2022) 700 Benefits paid in 2022 200