Question
Culver Company sponsors a defined benefit pension plan. The corporations actuary provides the following information about the plan. January 1, 2017 December 31, 2017 Vested
Culver Company sponsors a defined benefit pension plan. The corporations actuary provides the following information about the plan.
January 1, 2017 | December 31, 2017 | ||||
Vested benefit obligation | $1,650 | $1,750 | |||
Accumulated benefit obligation | 1,750 | 2,750 | |||
Projected benefit obligation | 2,250 | 3,560 | |||
Plan assets (fair value) | 1,730 | 2,640 | |||
Settlement rate and expected rate of return | 10 | % | |||
Pension asset/liability | 520 | ? | |||
Service cost for the year 2017 | 440 | ||||
Contributions (funding in 2017) | 750 | ||||
Benefits paid in 2017 | 210 |
(a) Compute the actual return on the plan assets in 2017.
(b) Compute the amount of the other comprehensive income (G/L) as of December 31, 2017. (Assume the January 1, 2017, balance was zero.) (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
(c) Compute the amount of net gain or loss amortization for 2017 (corridor approach).
(d) Compute pension expense for 2017.
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