Question

The Pension Plan for Plastics Inc. as of January 1, 2018, includes a Projected Beneft Obligation of $800,000 and Plan Assets of $670,000. During the year, Pension Expense was $40,000, Contributions to the plan were $20,000 and benefits paid to retirees in 2018 were $14,000 2018 year end Balances are - Pension Benefit Obligation - $975,00, P $250,000 and Plan Assets of $725,000. Based on the above data, what was the actual return on Plan Assets for 2018? ension Liablity Part 2 Presente d below is pension information related to United Manufacturing $8,000 5,000

Answer 1

Defined Benefit Pension Plan is essentially a promises by the employer pay a defined amount of pension in future. The amount of pension benefit be provided is defined, usually by reference of age, year of service, compensation etc. Plan Assets: Fair Value at the Beginning of the year (+) Contribution (+) Actual Return Benefits Paid Fair Value at the End of the year Plan Assets: Particulars Fair Value at the End of the year 2018 (fs Paid (-) Contribution () Fair Value at the Beginning of the year 2018 Actual Return Amount $725,000 $14,000 ($20,000) $670,000 $49,000