Question
Exercise 20-13 Erickson Company sponsors a defined benefit pension plan. The corporations actuary provides the following information about the plan. January 1, 2014 December 31,
Exercise 20-13
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 | $1,970 | $2,460 |
Accumulated benefit obligation | 2,460 | 3,840 |
Projected benefit obligation | 2,080 | 3,300 |
Plan assets (fair value) | 1,160 | 2,590 |
Settlement rate and expected rate of return | 10 | % |
Pension asset/liability | 920 | ? |
Service cost for the year 2014 | 420 | |
Contributions (funding in 2014) | 890 | |
Benefits paid in 2014 | 260 |
(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.
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