Erickson Company sponsors a defined benefit pension plan. The corporations actuary provides the following information about the plan.

		January 1, 2014		December 31, 2014
Vested benefit obligation		$1,500		$1,900
Accumulated benefit obligation		1,900		2,730
Projected benefit obligation		2,500		3,300
Plan assets (fair value)		1,700		2,620
Settlement rate and expected rate of return				10	%
Pension asset/liability		800		?
Service cost for the year 2014				400
Contributions (funding in 2014)				700
Benefits paid in 2014				200

(a) Compute the actual return on the plan assets in 2014.

(b) Compute the amount of the other comprehensive income (G/L) as of December 31, 2014. (Assume the January 1, 2014, balance was zero.) (

(c) Compute the amount of net gain or loss amortization for 2014 (corridor approach).

(d) Compute pension expense for 2014.
 

Answer rating: 100% (QA)

a Calculate the amount of actual returm on plan assets in 2014 Amounts S 1700 700 2400 200 2200 42... View the full answer