Solution-Compute the actual return on the plan assets

Compute the actual return on the plan assets

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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

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Compute the actual return on the plan assets

Reference no: EM132734985

Reference no: EM132734985

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