Question
The following information relates to the pension plan for the employees of Turner Co.: 1/1/14 12/31/14 12/31/15 Accum. benefit obligation $6,160,000 $6,440,000 $8,400,000 Projected benefit
The following information relates to the pension plan for the employees of Turner Co.:
1/1/14 12/31/14 12/31/15
Accum. benefit obligation $6,160,000 $6,440,000 $8,400,000
Projected benefit obligation 6,510,000 6,972,000 9,338,000
Fair value of plan assets 5,950,000 7,280,000 8,036,000
AOCI net (gain) or loss -0- (1,008,000) (1,120,000)
Settlement rate (for year) 11% 11%
Expected rate of return (for year) 8% 7%
Turner estimates that the average remaining service life is 16 years. Turner's contribution was $882,000 in 2015 and benefits paid were $658,000.
The actual return on plan assets in 2015 is Hint: Use beginning and ending plan asset balances along with other information to calculate the actual return.
a. $476,000.
b. $532,000.
c. $686,000.
d. $756,000.
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