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.

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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