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Defined benefit Pension Plan

Erikson Company sponsors a defined benefit pension plan. The corporation's actuary provides the following information about the plan.
(First number Jan 1 2010, 2nd Dec 31, 2010)
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 1,100 ?
Service cost for the year 2010 400
Contributions (funding in 2010) 700
Benefits paid in 2010 200

(a) Compute the actual return on the plan assets in 2010.

$

(b) Compute the amount of the other comprehensive income (G/L) as of December 31, 2010. (Assume the January 1, 2010, balance was zero.)

$

(c) Compute the amount of net gain or loss amortization for 2010 (corridor approach).

$

(d) Compute pension expense for 2010.

$

Solution Summary

Your solutions plus hints about how the computations are done are in Excel. Click on cells to see computations.

$2.19