Question 9-pen sion The following informati on is for the pension plan for the employees of Otto Company." Defined benefit obligation Fair value of plan assets 31/12/2019 3,508,000 3,080,000 31/12/2020 4,050,600 3,800,600 Discount rate 7% The company estimates that the average remaining service life is 15 years. Its contribution was £511,000 in 2020 and benefits paid were £261,500. Requirede (a) - Calculate the interest expense for 2020. (b) → Calculate the actual return on plan assets in 2020. (c) → Calculate the gain or loss in 2020.
Question 9-pen sion The following informati on is for the pension plan for the employees of Otto Company." Defined benefit obligation Fair value of plan assets 31/12/2019 3,508,000 3,080,000 31/12/2020 4,050,600 3,800,600 Discount rate 7% The company estimates that the average remaining service life is 15 years. Its contribution was £511,000 in 2020 and benefits paid were £261,500. Requirede (a) - Calculate the interest expense for 2020. (b) → Calculate the actual return on plan assets in 2020. (c) → Calculate the gain or loss in 2020.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 4E
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![Question 9-pensione
The following information is for the pension plan for the employees of Otto Company.
31/12/2019
31/12/2020
4,050,600
Defined benefit obligation
Fair value of plan assets
3,508,000
3,080,000
3,800,600
Discount rate
7% ,
The company estimates that the average remaining service life is 15 years. Its contribution
was £511,000 in 2020 and benefits paid were £261,500.4
Requirede
(a) → Calculate the interest expense for 2020.
(b) → Calculate the actual return on plan assets in 2020.
(c) - Calculate the gain or loss in 2020.4](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6bebb32d-7baa-4dc7-9d5b-3b384e7cc8ac%2F901a201c-1d83-4c68-9235-c35c0afa50d4%2Fzokqls_processed.png&w=3840&q=75)
Transcribed Image Text:Question 9-pensione
The following information is for the pension plan for the employees of Otto Company.
31/12/2019
31/12/2020
4,050,600
Defined benefit obligation
Fair value of plan assets
3,508,000
3,080,000
3,800,600
Discount rate
7% ,
The company estimates that the average remaining service life is 15 years. Its contribution
was £511,000 in 2020 and benefits paid were £261,500.4
Requirede
(a) → Calculate the interest expense for 2020.
(b) → Calculate the actual return on plan assets in 2020.
(c) - Calculate the gain or loss in 2020.4
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