Carla Vista Company sponsors a defined benefit pension plan. The corporation's actuary provides the following information about the plan. January 1, December 31, 2020 2020 Vested benefit obligation $1,620 $1,780 Accumulated benefit obligation 1,780 2,720 Projected benefit obligation 2,550 3,590 Plan assets (fair value) 1,650 2,800 Settlement rate and expected rate of return 10 % Pension asset/liability 900 ? Service cost for the year 2020 390 Contributions (funding in 2020) Benefits paid in 202- 680 180 (a) Compute the actual return on the plan assets in 2020. Actual return on the plan assets $ (b) Compute the amount of the other comprehensive income (G/L) as of December 31, 2020. (Assume the January 1, 2020, balance was zero.) (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net pension liability gains and losses $ (c) Compute the amount of net gain or loss amortization for 2020 (corridor approach). Net gain or loss amortization $ (d) Compute pension expense for 2020. Pension expense $

Carla Vista Company sponsors a defined benefit pension plan. The corporation's actuary provides the following information about the plan. January 1, December 31, 2020 2020 Vested benefit obligation $1,620 $1,780 Accumulated benefit obligation 1,780 2,720 Projected benefit obligation 2,550 3,590 Plan assets (fair value) 1,650 2,800 Settlement rate and expected rate of return 10 % Pension asset/liability 900 ? Service cost for the year 2020 390 Contributions (funding in 2020) Benefits paid in 202- 680 180 (a) Compute the actual return on the plan assets in 2020. Actual return on the plan assets $ (b) Compute the amount of the other comprehensive income (G/L) as of December 31, 2020. (Assume the January 1, 2020, balance was zero.) (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net pension liability gains and losses $ (c) Compute the amount of net gain or loss amortization for 2020 (corridor approach). Net gain or loss amortization $ (d) Compute pension expense for 2020. Pension expense $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Carla Vista Company sponsors a defined benefit pension plan. The corporation's actuary provides the following information about
the plan.
January 1,
December 31,
2020
2020
Vested benefit obligation
$1,620
$1,780
Accumulated benefit obligation
1,780
2,720
Projected benefit obligation
2,550
3,590
Plan assets (fair value)
1,650
2,800
Settlement rate and expected rate of return
10 %
Pension asset/liability
900
?
Service cost for the year 2020
390
Contributions (funding in 2020)
Benefits paid in 202-
680
180
(a) Compute the actual return on the plan assets in 2020.
Actual return on the plan assets
$
(b) Compute the amount of the other comprehensive income (G/L) as of December 31, 2020. (Assume the January 1, 2020, balance
was zero.) (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Net pension liability gains and losses
$
(c) Compute the amount of net gain or loss amortization for 2020 (corridor approach).
Net gain or loss amortization
$
(d) Compute pension expense for 2020.
Pension expense
$

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