Erickson Company sponsors a defined benefit pension plan. The corporation's actuary provides the following information about the plan.
|
|
January 1, 2014 |
|
December 31, 2014 |
| Vested benefit obligation |
|
$1,500 |
|
$1,900 |
|
| Accumulated benefit obligation |
|
1,900 |
|
2,730 |
|
| Projected benefit obligation |
|
2,500 |
|
3,300 |
|
| Plan assets (fair value) |
|
1,700 |
|
2,620 |
|
| Settlement rate and expected rate of return |
|
|
|
10 |
% |
| Pension asset/liability |
|
800 |
|
? |
|
| Service cost for the year 2014 |
|
|
|
400 |
|
| Contributions (funding in 2014) |
|
|
|
700 |
|
| Benefits paid in 2014 |
|
|
|
200 |
|
(a) Compute the actual return on the plan assets in 2014.
(b) Compute the amount of the other comprehensive income (G/L) as of December 31, 2014. (Assume the January 1, 2014, balance was zero.) (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
(c) Compute the amount of net gain or loss amortization for 2014 (corridor approach).
(d) Compute pension expense for 2014.