Indigo Company sponsors a defined benefit pension plan. The corporation's actuary provides the following information about the
Question:
Indigo Company sponsors a defined benefit pension plan. The corporation's actuary provides the following information about the plan. January 1, 2020 December 31, 2020 Vested benefit obligation $1,650 $1,750 Accumulated benefit obligation 1,750 2,750 Projected benefit obligation 2,250 2,770 Plan assets (fair value) 1,730 2,640 Settlement rate and expected rate of return 10% Asset/Liability pension 520? Service cost for the year 2020 440 Contributions (financing in 2020) 750 Benefits paid in 202-210
(a) Calculate the actual return on plan assets in 2020.
(b) Calculate the amount of other comprehensive income (G/L) as of December 31, 2020. (Assume that the balance on January 1, 2020 was zero.) (Enter the loss using a negative sign preceding the number, for example -45, or parentheses, for example (45).
(c) Calculate the amount of amortization of net gain or loss for 2020 (corridor's method).
(d) Calculate the pension expense for 2020.
Intermediate Accounting Volume 2
ISBN: 9781119497042
12th Canadian Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy