The following information relates to the Turner Co. employee pension plan:

                                                                 1/1/14                 31/12/14              31/12/15

Accum. benefit obligation                  $6,160,000            $6,440,000          $8,400,000

Obligation for projected benefits       6,510,000              6,972,000             9,338,000

Fair value of plan assets                      5,950,000              7,280,000             8,036,000

AOCI – (gain) or net loss                        -0-                       (1,008,000)             (1,120,000)

Settlement rate (per year)                                                    11%                        11%

Expected rate of return (per year)                                        8%                            7%

Turner estimates the average remaining useful life to be 16 years. Turner's contribution was $882,000 in 2015 and benefits paid were $658,000.

Calculate 

1. The interest cost for 2015 

2. The actual return on plan assets in 2015

3.  The unexpected gain or loss on plan assets in 2015

Answer rating: 100% (QA)

1 Interest cost for 2015 The interest cost for 2015 is calculated as the difference between the begi... View the full answer