Question

Breeport Company poorsa defined benefit person plan. The corporations provides the following form the plan December 31 laury 1 2020 $1.560 2010 2,260 $2,010 2 R2O Vested benefit obligation Accumulated benefit obligation Projected benefit obligation Plan ts(Fair value] Settlement rate and expected rate ofretum Pension asset/iability Service cost for the year 2020 Contributions [funding in 2020) Benefits paid in 202 2.920 2.560 10% (a) Compute the actual return on the plan assets in 2020 Actual return on the plan assets S (1) Compute the amount of the other comprehensive income (G/L) as of December 31, 2020. Asume the January 1, 2020, balance was zero) Enter loss using eith Net pension liability gains and lossess id Compute the amount of net gain or loss amortization for 2020 corridor approach Net gain or loss amortizations Compute pension pense for 2020 Pension openses

Answer 1

a.

Actual return on plan assets = [2560-1540] - [730-200] = 490

b.

Net pension liability gain/loss : =

Liability loss = 2980 - [ 2260 + 226 + 400 -200 ] = 294

Asset gain = 2560 - [ 1540 + 154 + 730 -200 ] = 336

Net pension liability loss = 336 - 294 = - 42

c.

Net gain or loss amortisation = 0

d.

Pension expense = 400 + 226 -490 + 336 = 472