For Beavers Corporation, year-end plan assets were $2,000,000. At the beginning of the year, plan assets were $1,680,000. During the year, contributions to the pension fund were $120,000, and benefits paid were $200,000. Computer Beavers actual return on plan assets.

Solution:

Ending plan assets $2,000,000

Beginning plan assets 1,680,000

Increase in plan assets 320,000

Deduct: Contributions $120,000

Less Benefits Paid 200,000 (80,000)

Actual Return on Plan Assets 400,000