Erickson Company sponsors a defined benefit pension plan. The corporation?s actuary provides the following information about the plan.

Instructions

a. Compute the actual return on the plan assets in 2020.

b. Compute the amount of the other comprehensive income (G/L) as of December 31, 2020. (Assume the January 1, 2020, balance was zero.)

c. Compute the amount of net gain or loss amortization for 2020 (corridor approach).

d. Compute pension expense for 2020.

Transcribed Image Text:

January 1, 2020 December 31, 2020 Vested benefit obligation Accumulated benefit obligation Projected benefit obligation Plan assets (fair value) $1,500 1,900 2,500 1,700 $1,900 2,730 3,300 2,620 January 1, 2020 December 31, 2020 Settlement rate and expected rate of return Pension asset/liability Service cost for the year 2020 Contributions (funding in 2020) Benefits paid in 2020 10% $ 800 400 700 200