E20.13 (LO 1, 2, 4) (Computation of Actual Return, Gains and Losses, Corridor Test, and Pension Expense) Erickson Company sponsors a defi ned benefi t pension plan. The corporations actuary provides the following information about the plan. January 1, December 31, 2020 2020 Vested benefi t obligation $1,500 $1,900 Accumulated benefi t obligation 1,900 2,730 Projected benefi t obligation 2,500 3,300 Plan assets (fair value) 1,700 2,620 January 1, December 31, 2020 2020 Settlement rate and expected rate of return 10% Pension asset/liability $ 800 $ ? Service cost for the year 2020 400 Contributions (funding in 2020) 700 Benefi ts paid in 2020 200 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.

E20.14 (LO 1, 2, 4) (Worksheet for E20.13) Using the information in E20.13 about Erickson Companys defi ned benefi t pension plan, prepare a 2020 pension worksheet with supplementary schedules of computations. Prepare the journal entries at December 31, 2020, to record pension expense and related pension transactions. Also, indicate the pension amounts reported in the balance sheet.

only E20.14