Problem-
The following information relates to the pension plan for the employees of Turner Co.: Turner estimates that the average remaining service life is 16 years. Turner's contribution was $378,000 in 2013 and benefits paid were $282,000.
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1/1/12
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1/1/13
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1/1/14
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Projected benefit obligation
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2,790,000
|
2,988,000
|
4,002,000
|
|
Fair value of plan assets
|
2,550,000
|
3,120,000
|
3,444,000
|
|
AOCI- net (gain) or loss
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-0-
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(432,000)
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(480,000)
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|
Settlement rate (for year)
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|
11%
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11%
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|
Expected rate of return (for year)
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8%
|
7%
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|
Turner estimates that the average remaining service life is 16 years. Turner's contribution was $378,000 in 2013 and benefits paid were $282,000.
The unexpected gain or loss on plan assets in 2013 is
a. $19,680 loss.
b. $11,280 gain.
c. $9,600 gain.
d. $107,280 gain.
Additional information-
This problem belongs to Basics Accounting and it discusses about compute the unexpected gain or loss on plan assets for the year.