Question
The following information relates to the pension plan for the employees of Turner Co.: 1/1/1412/31/1412/31/15 Accum. benefit obligation$6,160,000$6,440,000$8,400,000 Projected benefit obligation6,510,0006,972,0009,338,000 Fair value of plan
The following information relates to the pension plan for the employees of Turner Co.:
1/1/1412/31/1412/31/15
Accum. benefit obligation$6,160,000$6,440,000$8,400,000
Projected benefit obligation6,510,0006,972,0009,338,000
Fair value of plan assets5,950,0007,280,0008,036,000
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.
1.The interest cost for 2015 is
a.$627,480.
b.$708,400.
c.$766,920.
d.$1,027,180.
2.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.
3. The unexpected gain or loss on plan assets in 2015 is
a.$45,920 loss.
b.$26,320 gain.
c.$22,400 gain.
d.$250,320 gain.
4.The corridor for 2015 is
a.$722,400.
b.$728,000.
c.$791,000.
d.$933,800.
5.The amount of AOCI (net gain) amortized in 2015 is
a.$17,850.
b.$17,500.
c.$13,563.
d.$11,638.
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