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Tom Johnson Company sponsors a defined benefit plan for its 100 employees. On December 31, 2015, the companys actuary provided the following information: 1/1/15 12/31/15
Tom Johnson Company sponsors a defined benefit plan for its 100 employees. On December 31, 2015, the companys actuary provided the following information: 1/1/15 12/31/15 Vested Benefit Obligation $1500 $1900 Accumulated Benefit Obligation 1900 2730 Projected Benefit Obligation 2800 3645 Plan Assets (Fair Value) 1700 2620 Pension Asset/Liability 1100 ? Service Cost for the Year 2015 400 Contributions (Funding 2015) 800 Benefits Paid in 2015 200 OCI (G/L) Balance -0- ? Settlement Rate and Expected Rate of Return 10% NOTE: You can use a pension worksheet but you must show your work in the spaces provided on the Exam. Please do not attach a worksheet. Be sure to label all items. Required: 1. Compute the actual return on plan assets in 2015. 2. Compute the amount of the OCI (G/L) as of 12/31/15. 3. Compute the amount of net gain or loss amortization for 2015 (corridor approach). 4. Compute the pension expense for 2015
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