1. The following facts pertain to the ABC Company's pension plan for 2012. Expected return on plan assets is 15%, the FMV of plan assets, on January1,2012 is $100,000, the GMV on December 31, 2012 is $130,000, contribution to pension plan was $14,000 and the benefits paid to retired employees was $8,000.

Requirment: Determine the actual return on plan assets components of net pension cost for 2012. Assume contribution and benefits payments were made at year-end.

2. Refer to question 1, consider the following information as of teh beginning of 2012. The projected benefit obligation or PBO was $135,000, the accumulated gain (loss) in other comprehensive income (OCI) was $20,000 and the average remaining service period of active employees is 20 years.

Requirment:

a. Determine the difference between the actual and expected return on plan assets for 2012

b. Determine the amortization of the net gain or loss accumulated in OCI.

c. Determine the gain or loss recognized as a component of pension cost in 2012.

d. Determine the accumulated gain or loss that would be carried forward in OCI in 2013