Question
Crane Company sponsors a defined benefit pension plan. The corporations actuary provides the following information about the plan. January 1, 2020 December 31, 2020 Vested
Crane Company sponsors a defined benefit pension plan. The corporations actuary provides the following information about the plan.
January 1, 2020 | December 31, 2020 | ||||||
Vested benefit obligation | $1,610 | $1,910 | |||||
Accumulated benefit obligation | 1,910 | 2,590 | |||||
Projected benefit obligation | 2,400 | 3,120 | |||||
Plan assets (fair value) | 1,680 | 2,430 | |||||
Settlement rate and expected rate of return | 10 | % | |||||
Pension asset/liability | 720 | ? | |||||
Service cost for the year 2020 | 400 | ||||||
Contributions (funding in 2020) | 660 | ||||||
Benefits paid in 202- | 180 |
(a) Compute the actual return on the plan assets in 2020.
Actual return on the plan assets | $ |
(b) Compute the amount of the other comprehensive income (G/L) as of December 31, 2020. (Assume the January 1, 2020, balance was zero.) (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Net pension liability gains and losses | $ |
(c) Compute the amount of net gain or loss amortization for 2020 (corridor approach).
Net gain or loss amortization | $ |
(d) Compute pension expense for 2020.
Pension expense | $ |
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