Calculate the interest on the obligation

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Question - Pension plan calculations - The following information relates to the defined benefit pension plan for Strawberry Dale Ltd.:

 

Dec 31/19

Dec 31/20

Defined benefit obligation

$2,250,000

$3,000,000

Fair value of plan assets

2,300,000

2,640,000

Interest rate

8%

8%

Expected rate of return

7%

6%

In 2020, the corporation contributed $ 390,000 to the plan, and the trustee paid $ 210,000 in benefits to retirees.

Required - For the year ended December 31, 2020

a) Calculate the interest on the obligation.

b) Calculate the actual return on plan assets.

c) Calculate the unexpected gain or loss (if any).

Reference no: EM133076077

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