The following pension-related data pertain to Metro Recreations noncontributory, defined benefit pension plan for 2006: Projected benefit
Question:
The following pension-related data pertain to Metro Recreation’s noncontributory, defined benefit pension plan for 2006:
Projected benefit obligation Accumulated benefits obligation Plan assets (fair value) Interest (discount) rate, 7% Expected return on plan assets, 10% Unrecognized prior service cost(from Dec. 31, 2005, amendment) Unrecognized net loss Average remaining service life: 12 years Gain due to changes in actuarial assumptions Contributions to pension fund (end of year) Pension benefits paid (end of year)
Jan. 1
$4,100 3,715 4,530
840 477
($ in 000s)
Dec. 31
$4,380 3,950 4,975
44 340 295
Required:
Prepare a pension spreadsheet that shows the relationships among the various pension balances, shows the changes in those balances, and computes pension expense for 2006.
Expected ReturnThe 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...
Step by Step Answer:
Computation of the Pension Expenses for 2006 Partic...View the full answer
