The return on plan assets is the increase in plan assets (at fair value), adjusted for contributions to the plan and benefits paid during the period. How is the return included in the calculation of the periodic pension expense?
The return on plan assets is the increase in plan assets (at fair value), adjusted for contributions to the plan and benefits paid during the period. How is the return included in the calculation of the periodic pension expense?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The return on plan assets is the increase in plan assets (at fair value), adjusted for contributions to the plan and
benefits paid during the period. How is the return included in the calculation of the periodic pension expense?
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Step 1
Return on plan assets is calculated as Plan assets * Expected Return
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