Rasband Photography has a pension plan covering its 100 employees. Rasband anticipates an 11% return on its

Question:

Rasband Photography has a pension plan covering its 100 employees. Rasband anticipates an 11% return on its pension fund. The fund trustee furnishes Rasband with the following information relating to the pension fund for 2011:

Compute the difference between the actual and expected return on the pension fund. How should the difference be treated in determining pension expense for 2011? Rasband bases expected return on the market-related value of the pensionfund.

Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...