Compute the actual return on plan assets

Assignment Help Accounting Basics

Reference no: EM131967417

Problem

William Corporation sponsors a defined benefit pension plan. The actuary provides the following information about the plan at December 31, 2014. Defined Benefit Obligation $700,000 Plan Assets (fair value) $685,000 Service cost $120,000 Contributions $272,000 Benefits $150,000 On January 1, 2014, the fair value of the plan assets was $273,000 and the defined benefit obligation was $320,000. The plan is discounted at an interest rate of 10%.

Instructions

a) Compute the actual return on plan assets in 2014.
b) Compute asset gain or loss and indicate how the gain or loss would be reported.

Reference no: EM131967417

Questions Cloud

How much are the monthly payments : A debt of $250,000 is due in 5 years. If payments made are monthly (at the beginning of each month), how much are the monthly payments if interest is at 6%?

What is the koses weighted average cost of capital : What is the Kose's weighted average cost of capital? Use the book value of debt and the market value equity for your weights?

What is the amount of the safe payment to partner x : The XY partnership is undergoing an installment liquidation. Assuming all liabilities have been paid, what is the amount of the safe payment to partner X?

Grow at an annual rate : Sarif currently reinvests 28% of its earnings each year and its dividends are expected to grow at an annual rate of 5% in perpetuity.

Compute the actual return on plan assets : Compute the actual return on plan assets in 2014. Compute asset gain or loss and indicate how the gain or loss would be reported.

What should be the price of a share of weyland yutani : The firm's shareholders have a required rate of return of 14.2% and its dividends are forecast to grow at 5.43% forever. What should be the price of a share

What should be the price of a share : What should be the price of a share if it paid $1.75 in dividends in the last financial year, its dividend growth rate is 4%, and the required rate of return.

What would be the impact on income for buying : A total of 11,000 units of Part N29 are internally produced and used every year. What would be the impact on income for buying part N29 from the supplier?

How much money will they have accumulated : a. How much money will they have accumulated 30 years from now?

User Account

All Pages