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January 1, 2017 December 31, 2017 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 2017 Contributions (funding in 2017) Benefits paid in 2017 $1,500 $1,900 1,900 2,730 2,500 1,700 3,300 2,620 10% 800 ? 400 700 200

January 1, 2017 December 31, 2017 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 2017 Contributions (funding in 2017) Benefits paid in 2017 $1,500 $1,900 1,900 2,730 2,500 1,700 3,300 2,620 10% 800 ? 400 700 200

FINANCIAL ACCOUNTING
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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(Computation of Actual Return, Gains and Losses, Corridor Test, and Pension Expense) Erickson Company sponsors a defined benefit pension plan. The corporation’s actuary provides the following information about the plan.

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Instructions
(a) Compute the actual return on the plan assets in 2017.
(b) Compute the amount of the other comprehensive income (G/L) as of December 31, 2017. (Assume the January 1, 2017, balance was zero.)
(c) Compute the amount of net gain or loss amortization for 2017 (corridor approach).
(d) Compute pension expense for 2017.

January 1, 2017 December 31, 2017 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 2017 Contributions (funding in 2017) Benefits paid in 2017 $1,500 $1,900 1,900 2,730 2,500 1,700 3,300 2,620 10% 800 ? 400 700 200
Transcribed Image Text:January 1, 2017 December 31, 2017 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 2017 Contributions (funding in 2017) Benefits paid in 2017 $1,500 $1,900 1,900 2,730 2,500 1,700 3,300 2,620 10% 800 ? 400 700 200
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