January 1, 2017 December 31, 2017 Defined benefit obligation Plan assets (fair value) $2,500 1,700 $3,300 2,620 Discount rate 10% Pension asset/liability Service cost for the year 2017 Contributions (funding in 2017) Benefits paid in 2017 800 ? 400 700 200
January 1, 2017 December 31, 2017 Defined benefit obligation Plan assets (fair value) $2,500 1,700 $3,300 2,620 Discount rate 10% Pension asset/liability Service cost for the year 2017 Contributions (funding in 2017) Benefits paid in 2017 800 ? 400 700 200
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Linda Berstler Company sponsors a defined benefit pension plan. The corporation’s actuary provides the following information about the plan.
Check the below image for information.
Instructions
(a) Compute the actual return on the plan assets in 2017.
(b) Compute the amount of other comprehensive income (G/L) as of December 31, 2017. (Assume the January 1, 2017, balance was zero.)
Transcribed Image Text:January 1,
2017
December 31,
2017
Defined benefit obligation
Plan assets (fair value)
$2,500
1,700
$3,300
2,620
Discount rate
10%
Pension asset/liability
Service cost for the year 2017
Contributions (funding in 2017)
Benefits paid in 2017
800
?
400
700
200
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