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Erickson Company sponsors a defined benefit pension plan. The corporations actuary provides the following information about the plan. January 1, 2017 December 31, 2017 Vested
Erickson 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 | $1,500 | $1,900 | |||
Accumulated benefit obligation | 1,900 | 2,730 | |||
Projected benefit obligation | 2,500 | 3,300 | |||
Plan assets (fair value) | 1,700 | 2,620 | |||
Settlement rate and expected rate of return | 10% | ||||
Pension asset/liability | 800 | ? | |||
Service cost for the year 2017 | 400 | ||||
Contributions (funding in 2017) | 700 | ||||
Benefits paid in 2017 | 200 |
(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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