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Sweet Company sponsors a defined benefit pension plan. The corporations actuary provides the following information about the plan. January 1, 2020 December 31, 2020 Vested
Sweet Company sponsors a defined benefit pension plan. The corporations actuary provides the following information about the plan.
January 1, 2020 | December 31, 2020 | ||||||
Vested benefit obligation | $1,370 | $1,920 | |||||
Accumulated benefit obligation | 1,920 | 2,930 | |||||
Projected benefit obligation | 2,300 | 2,830 | |||||
Plan assets (fair value) | 1,770 | 2,650 | |||||
Settlement rate and expected rate of return | 10 | % | |||||
Pension asset/liability | 530 | ? | |||||
Service cost for the year 2020 | 370 | ||||||
Contributions (funding in 2020) | 770 | ||||||
Benefits paid in 202- | 210 |
(a) Compute the actual return on the plan assets in 2020.
Actual return on the plan assets | $ |
(b) Compute the amount of the other comprehensive income (G/L) as of December 31, 2020. (Assume the January 1, 2020, balance was zero.)
Net pension liability gains and losses | $
|
(c) Compute the amount of net gain or loss amortization for 2020 (corridor approach).
Net gain or loss amortization | $ |
(d) Compute pension expense for 2020.
Pension expense | $ |
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