Compute the actual return on the plan assets

Assignment Help Accounting Basics
Reference no: EM132734985

Problem - Computation of Actual Return, Gains and Losses, and Pension Expense

Erickson plc sponsors a defined benefit pension plan. The company's actuary provides the following information about the plan.

 

January 1, 2019

December 31, 2019

Vested benefit obligation

£1,500

£1,900

Accumulated benefit obligation

1,900

2,730

Defined benefit obligation

2,500

3,300

Plan assets (fair value)

1,700

2,620

Discount (interest) rate

 

10%

Pension asset/liability

800

?

Service cost for the year 2019

 

400

Contributions (funding in 2019)

 

700

Benefits paid in 2019

 

200

Instructions -

a. Compute the actual return on the plan assets in 2019.

b. Compute the amount of net gain or loss for 2019.

c. Compute the amount of the other comprehensive income (G/L) as of December 31, 2019. (Assume the January 1, 2019, balance was zero.)

Reference no: EM132734985

Questions Cloud

Compute the equivalent units for conversion costs using fifo : Assume that beginning inventory is 50 percent complete with respect to materials. Compute the equivalent units for conversion costs using FIFO.
SAN central data facility versus the dispersed arrangement : Compare the pros and cons of consolidating data on a SAN central data facility versus the dispersed arrangement it replaces.
Global response against covid-19 : Scientists, doctors, and public health officials from around the world are contributing to the global response against COVID-19.
Discuss what effect hr policies and procedures : Research analytic measures that are used to predict and evaluate the quality and impact of HR practices and Discuss what effect HR policies and procedures
Compute the actual return on the plan assets : The company's actuary provides the following information about the plan. Compute the actual return on the plan assets in 2019
What substance is called the spreading factor : What substance is called the "spreading factor"? How does the "spreading factor" aid an organism in its quest to penetrate the host cell?
Maximum network flow problem : Describe the final solution to each problem as infeasible, unbounded, or having an optimal feasible point - Formulate and solve the above LP
About comparing the Order Testudines : Make the topic about comparing the Order Testudines and all the major orders in the Clade Lepidosauromorpha, including their distinguishing morphological
What are the three categories of immune malfunctions : Define - innate immunity, adaptive immunity, humoral immunity, cell mediated immunity, inflammatory response, specific and non specific response

Reviews

Write a Review

Accounting Basics Questions & Answers

  Purchase with a bank loan

On January 1, 2014, Topaz Corp. purchased a piece of equipment with a list price of $60,000. The following amounts were related to the equipment purchase:

  The balance sheets at the end of each of the first two

the balance sheets at the end of each of the first two years of operations indicate the following 2006 2005 total

  Prepare the journal entry to recognize the impairment

The company believes that impairment accounting is now appropriate for these bonds. Prepare the journal entry to recognize the impairment

  Compute the IRR for each project

Project A requires an initial cash outlay of $100,000 followed by five years of $30,000 cash inflows. Compute the IRR for each project

  How much is the accumulated depreciation

Using this information, how much is: The accumulated depreciation after the fiscal year 2020 adjusting entry. The 2020 depreciation expense

  Show general journal entries to record the declaration

Show general journal entries to record the declaration of dividends on 30 November 2019 and the subsequent payment of dividends on 31 December 2019

  What are the nature of the contingency disclosure

What are the nature of the contingency disclosure for this company

  What is the carrying amount of the bond at December

On January 1, 2014, Bar company issued its 10-year, What is the carrying amount of the bond at December 31, 2016

  Record the given transactions

Richetti Ltd. was incorporated as a private company on January 2, 2018, Jan. 6 Issued 190,000 common shares for $1.60 per share. Record the above transactions

  Indicate with reasons what the level of production and the

zimmerman manufacturing limited produces and sells one product a three foot canadian flag. during 20x6 the

  What is her filing status

John and Marge were married 26 years ago. They have one child, Monica. What is her filing status

  Prepare a balance sheet for nicoles getaway spa

Nicole Mackisey is thinking of forming her own spa business, Nicole's Getaway Spa (NGS). Prepare a balance sheet for Nicole's Getaway Spa at December 31, 2013.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd