The following information is for the pension plan for the employees of Johnson, Inc. 12/31/14 12/31/15 Accumulated benefit obligation $2,800,000 $3,760,000 Projected benefit obligation 3,100,000 4,000,000 Fair value of plan assets 3,130,000 3,630,000 AOCI - Net (gain) or loss (425,000) (480,000) Settlement rate 8% 8% Expected rate of return 7% 6% Johnson estimates that the average remaining service life is 15 years. Johnson's contribution was $520,000 in 2015 and benefits paid were $260,000.
Instructions
(a) Calculate the interest cost for 2015.
(b) Calculate the actual return on plan assets in 2015.
(c) Calculate the unexpected gain or loss in 2015.
(d) Calculate the corridor for 2015 and the amortization of the net gain for 2015.