Actual return on plan assets
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The following information pertains to Maple Co's defined benefit pension plan for 2004:
Fair value of plan assets, beginning of year $350,000
Fair value of plan assets, end of year 525,000
Employer contributions 110,000
Benefits paid 85,000
What amount should Maple disclose as actual return on plan assets?
a. $ 65,000
b. $ 150,000
c. $ 175,000
d. $ 260,000
Remember to show calculations!
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The solution explains how to calculate the actual return on plan assets.
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