Cullumber estimates that the average remaining service life is 16 years. Cullumber's contribution was $ 1213000 in 2021 and benefits paid were $ 877000. The actual return on plan assets in 2021 is a. $ 2011000. b. $ 1134000. c. $ 798000. d. $ 336000.
Cullumber estimates that the average remaining service life is 16 years. Cullumber's contribution was $ 1213000 in 2021 and benefits paid were $ 877000. The actual return on plan assets in 2021 is a. $ 2011000. b. $ 1134000. c. $ 798000. d. $ 336000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
he following information relates to the pension plan for the employees of Cullumber Co.:
(See Image)
Cullumber estimates that the average remaining service life is 16 years. Cullumber's contribution was $ 1213000 in 2021 and benefits paid were $ 877000.
The actual return on plan assets in 2021 is
a. $ 2011000.
b. $ 1134000.
c. $ 798000.
d. $ 336000.
Transcribed Image Text:1/1/20
12/31/20
12/31/21
Accum. benefit obligation
$ 8140000
2$
8560000
$ 11500000
Projected benefit obligation
8665000
9358000
12907000
Fair value of plan assets
7825000
9820000
10954000
AOCI - net (gain) or loss
-0-
(1402000 )
( 1570000 )
Settlement rate (for year)
11%
11%
Expected rate of return (for year)
8%
7%
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