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.