Question;Erickson Company sponsors a defined benefit pension plan. The corporation's actuary provides the following information about the plan.1/1/2010 12/31/2010Vested benefit obligation $1,500 $1,900Accumulated benefit obligation 1,900 2,730Projected benefit obligation 2,500 3,300Plan assets (fair value) 1,700 2,620Settlement rate and expectedrate of return 10%Pension asset/liability 800?Service cost for the year 2010 400Contributions (funding in 2010) 700Benefits paid in 2010 200Instructions(a) Compute the actual retunr 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.(e) Prepare a 2010 pension worksheet with supplementary schedules of computations.(f) Prepare the journal entries at December 31, 2010, to record pension expense and related pension transactions. Also, indicate the pension amounts reported in the balance sheet.
Paper#40021 | Written in 18-Jul-2015Price : $25