Question
Erickson Company sponsors a defined benefit pension plan. The corporations actuary provides the following information about the plan. January 1, 2014 December 31, 2014 Vested
Erickson Company sponsors a defined benefit pension plan. The corporations actuary provides the following information about the plan.
January 1, 2014 | December 31, 2014 | ||||
Vested benefit obligation | $2,560 | $2,260 | |||
Accumulated benefit obligation | 2,260 | 4,280 | |||
Projected benefit obligation | 2,030 | 3,270 | |||
Plan assets (fair value) | 1,100 | 2,590 | |||
Settlement rate and expected rate of return | 10 | % | |||
Pension asset/liability | 930 | ? | |||
Service cost for the year 2014 | 410 | ||||
Contributions (funding in 2014) | 880 | ||||
Benefits paid in 2014 | 250 |
(a) Compute the actual return on the plan assets in 2014.
Actual return on the plan assets | $ |
(b) Compute the amount of the other comprehensive income (G/L) as of December 31, 2014. (Assume the January 1, 2014, balance was zero.) (Enter negative amounts 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 2014 (corridor approach).
Net gain or loss amortization | $ |
(d) Compute pension expense for 2014.
Pension expense | $ |
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