Swan Nator has a defined benefit pension plan with a settlement rate of 6 and they expect the long run rate of return on plan assets to be 8 The tax rate is 40 and Swan Nator made no plan amendments in 2007 The following additional information about their pension plan during this period is available Description 12 31 2006 12 31 2007 Average remaining working life of covered employees (in years) 14 13 PBO with actuarial changes $ 850,000 $ 910,000 Expected PBO prior to actuarial changes Not Needed $ 890,000 Actual fair market value of plan assets (after receiving the annual funding check of $90,000 written on 12 31 07) $ 190,000 $ 267,000 Unamortized prior service cost $ 235,000 $ 195,000 Unamortized pension loss (gain) $ 99,000 Service cost Not Needed $ 30,000 Required Determine the amount of pension gain or loss to be amortized in 2007 Swan Nator uses the corridor method of amortization Based on the PBO Swan Nator expected to have before the change in actuarial assumptions, compute the benefits Swan Nator must have paid out in 2007 Using your calculation of the benefits paid, calculate Swan Nators 2007 actual return on plan assets Based on your computed value, also compute Swan Nators 2007 asset gain or loss

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Swan-Nator has a defined benefit pension plan with a settlement rate of 6% and they expect the long-run rate of return on plan assets to

Swan-Nator has a defined benefit pension plan with a settlement rate of 6% and they expect the long-run rate of return on plan assets to be 8%. The tax rate is 40% and Swan-Nator made no plan amendments in 2007. The following additional information about their pension plan during this period is available:

Description	12/31/2006	12/31/2007
Average remaining working life of covered employees (in years)	14	13
PBO with actuarial changes	$ 850,000	$ 910,000
Expected PBO prior to actuarial changes	Not Needed	$ 890,000
Actual fair market value of plan assets (after receiving the annual funding check of $90,000 written on 12/31/07)	$ 190,000	$ 267,000
Unamortized prior service cost	$ 235,000	$ 195,000
Unamortized pension loss (gain)	$ 99,000	??
Service cost	Not Needed	$ 30,000

Required:

Determine the amount of pension gain or loss to be amortized in 2007. Swan-Nator uses the corridor method of amortization.

Based on the PBO Swan-Nator expected to have before the change in actuarial assumptions, compute the benefits Swan-Nator must have paid out in 2007.

Using your calculation of the benefits paid, calculate Swan-Nators 2007 actual return on plan assets. Based on your computed value, also compute Swan-Nators 2007 asset gain or loss.