Erickson Company sponsors a defined benefit pension plan. The corporation??s actuary provides the following information about the
Question:
Erickson Company sponsors a defined benefit pension plan. The corporation??s actuary provides the following information about the plan.
Instructions(a) Compute the actual return on the plan assets in 2012.(b) Compute the amount of the other comprehensive income (G/L) as of December 31, 2012. (Assume the January 1, 2012, balance was zero.)(c) Compute the amount of net gain or loss amortization for 2012 (corridor approach).(d) Compute pension expense for2012.
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January 1, December 31, 2012 2012 Vested benefit obligation Accumulated benefit obligation Projected benefit obligation Plan assets (fair value) Settlement rate and expected rate of return Pension asset/liability Service cost for the year 2012 Contributions (funding in 2012) Benefits paid in 2012 $1,500 $1,900 2,730 3,300 2,620 10% 2,500 1,700 800 400 700 200
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a Actual Return Ending Beginning Contributions Benefits Fair value of plan assets December 31 2012 2...View the full answer
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