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Please help with Formulas. 6 7 8 9 E20-13 (Computation of Actual Return, Gains and Losses, Corridor Test, and Pension Expense) Erickson Company sponsors a
Please help with Formulas.
6 7 8 9 E20-13 (Computation of Actual Return, Gains and Losses, Corridor Test, and Pension Expense) Erickson Company sponsors a defined benefit pension plan. The corporation's actuary provides the following infor- mation about the plan. January 1, December 31, 2014 2014 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 2014 400 Contributions (funding in 2014) 700 Benefits paid in 2014 200 Instructions (a) Compute the actual return on the plan assets in 2014. (b) Compute the amount of the other comprehensive income (G/L) as of December 31, 2014. (Assume the January 1, 2014, balance was zero.) (c) Compute the amount of net gain or loss amortization for 2014 (corridor approach). (d) Compute pension expense for 2014. (d) Compute pension expense for 2014. 5 E20-14 (Worksheet for E20-13) Using the information in E20-13 about Erickson Company's defined ben- efit pension plan, prepare a 2014 pension worksheet with supplementary schedules of computations. Pre- pare the journal entries at December 31, 2014, to record pension expense and related pension transactions. Also, indicate the pension amounts reported in the balance sheetStep by Step Solution
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