Erikson Company
(Computation of Actual Return, Gains and Losses, Corridor Test, and Pension Expense)
Erikson Company sponsors a defined benefit pension plan. The corporation's actuary provides the following information about the plan.
January 1 December 31
2010 2010
Vested benefit obligation $1,905 $2,413
Accumulated benefit obligation 2,413 3,467
Projected benefit obligation 3,175 4,191
Plan assets (fair value) 2,159 3,327
Settlement rate and expected rate of return 10%
Pension asset/liability 1,016 ?
Service cost for the year 2010 508
Contributions (funding in 2010) 889
Benefits paid in 2010 254
(If answer is zero, please enter a 0, do not leave any fields blank)
(a) Compute the actual return on the plan assets in 2010.
$
(b) Compute the amount of the other comprehensive income (G/L) as of December 31, 2010. (Assume the January 1, 2010, balance was zero.)
$
(c) Compute the amount of net gain or loss amortization for 2010 (corridor approach).
$
(d) Compute pension expense for 2010.
$
12 years ago
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- erikson_company.xls