Question - Erickson Company sponsors a defined benefit pension plan. The corporation's actuary provides the following information about the plan.
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January 1, 2014
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December 31, 2014
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Vested benefit obligation
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$1,970
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$2,460
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Accumulated benefit obligation
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2,460
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3,840
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Projected benefit obligation
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2,080
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3,300
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Plan assets (fair value)
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1,160
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2,590
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Settlement rate and expected rate of return
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10
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%
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Pension asset/liability
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920
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?
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Service cost for the year 2014
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420
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Contributions (funding in 2014)
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890
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|
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Benefits paid in 2014
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260
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(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.