Cullumber Company sponsors a defined benefit pension plan. The corporation's actuary provides the following information about theplan.Vested benefit obligationAccumulated benefit obligationProjected benefit obligationPlan assets (fair value)Settlement rate and expected rate of returnPension asset/liabilityService cost for the year 2020Contributions (funding in 2020)Benefits paid in 202-Actual return on the plan assets $Net pension liability gains and losses $(a) Compute the actual return on the plan assets in 2020.Net gain or loss amortizationJanuary 1,2020$1,640(d) Compute pension expense for 2020.Pension expense2,060$$2,3901,770620230December 31,2020$2,0602,6103,2302,490(b) Compute the amount of the other comprehensive income (G/L) as of December 31, 2020. (Assume the January 1, 2020, balancewas zero.) (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)10 %?(c) Compute the amount of net gain or loss amortization for 2020 (corridor approach).400710220

The pension expense is related to the business expenses for the pension payable to the employees.…

Cullumber Company sponsors a defined benefit pension plan. The corporation's actuary provides the following information about th plan. Vested benefit obligation Accumulated benefit obligation Projected benefit obligation Plan assets (fair value) Settlement rate and expected rate of return Pension asset/liability Service cost for the year 2020 Contributions (funding in 2020) Benefits paid in 202- Actual return on the plan assets $ January 1, 2020 $1,640 2,060 (a) Compute the actual return on the plan assets in 2020. Net pension liability gains and losses $ 2,390 1,770 620 230 December 31, 2020 $2,060 2,610 3,230 2,490 10 % ? 400 710 220 (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).)

Cullumber Company sponsors a defined benefit pension plan. The corporation's actuary provides the following information about th plan. Vested benefit obligation Accumulated benefit obligation Projected benefit obligation Plan assets (fair value) Settlement rate and expected rate of return Pension asset/liability Service cost for the year 2020 Contributions (funding in 2020) Benefits paid in 202- Actual return on the plan assets $ January 1, 2020 $1,640 2,060 (a) Compute the actual return on the plan assets in 2020. Net pension liability gains and losses $ 2,390 1,770 620 230 December 31, 2020 $2,060 2,610 3,230 2,490 10 % ? 400 710 220 (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).)

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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