($ in millions)Plan assets at fair value, January 1630Expected return on plan assets63Actual return on plan assets50Contributions to the pension fund (end of year)106Amortization of net loss11Pension benefits paid (end of year)14Pension expense78Required:Determine the amount of pension plan assets at fair value on December 31.

Formula: Beginning plan Assets + Actual return on plan assets + Contributions to the pension fund -…

Plan assets at fair value, January 1 630 Expected return on plan assets 63 Actual return on plan assets Contributions to the pension fund (end of year) 50 106 Amortization of net loss 11 Pension benefits paid (end of year) 14 Pension expense 78

Plan assets at fair value, January 1 630 Expected return on plan assets 63 Actual return on plan assets Contributions to the pension fund (end of year) 50 106 Amortization of net loss 11 Pension benefits paid (end of year) 14 Pension expense 78

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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Concept explainers

Employee Benefits

In an organization employees are the most important resource and most important asset. They can lead an organization to the sky or can be the reason for unsuccessful of business. Therefore, it is very much important that employees of an organization should be satisfied by the environment of the organization and most importantly with the salary, wages incentives, etc.

Question

($ in millions)
Plan assets at fair value, January 1
630
Expected return on plan assets
63
Actual return on plan assets
50
Contributions to the pension fund (end of year)
106
Amortization of net loss
11
Pension benefits paid (end of year)
14
Pension expense
78
Required:
Determine the amount of pension plan assets at fair value on December 31.

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