Use the following information for questions 4 through 6. The following data are for the pension plan for the employees of Lockett Company. 1/1/1412/31/1412/31/15 Accumulated benefit obligation $2,500,000 $2,600,000 $3,400,000 Projected benefit obligation 2,700,000 2,800,000 3,700,000 Plan assets (at fair value) 2,300,000 3,000,000 3,300,000 AOCL – net loss -0- 580,000 500,000 Settlement rate (for year) 10% 9% Expected rate of return (for year) 8% 7% Lockett’s contribution was $420,000 in 2015 and benefits paid were $275,000. Lockett estimates that the average remaining service life is 20 years. 4.The actual return on plan assets in 2015 was a. $300,000. b. $255,000. c. $200,000. d. $155,000. 5.Assume that the actual return on plan assets in 2015 was $245,000. The unexpected gain on plan assets in 2015 was a. $32,000. b. $55,000. c. $35,000. d. $34,000. 6.The corridor for 2015 was $300,000. The amount of AOCI-net loss amortized in 2015 was a. $33,333. b. $32,000. c. $14,000. d. $12,000.
Use the following information for questions 4 through 6.
The following data are for the pension plan for the employees of Lockett Company.
1/1/1412/31/1412/31/15
Accumulated benefit obligation $2,500,000 $2,600,000 $3,400,000
Projected benefit obligation 2,700,000 2,800,000 3,700,000
Plan assets (at fair value) 2,300,000 3,000,000 3,300,000
AOCL – net loss -0- 580,000 500,000
Settlement rate (for year) 10% 9%
Expected
Lockett’s contribution was $420,000 in 2015 and benefits paid were $275,000. Lockett estimates that the average remaining service life is 20 years.
4.The actual return on plan assets in 2015 was
a. $300,000.
b. $255,000.
c. $200,000.
d. $155,000.
5.Assume that the actual return on plan assets in 2015 was $245,000. The unexpected gain on plan assets in 2015 was
a. $32,000.
b. $55,000.
c. $35,000.
d. $34,000.
6.The corridor for 2015 was $300,000. The amount of AOCI-net loss amortized in 2015 was
a. $33,333.
b. $32,000.
c. $14,000.
d. $12,000.
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