For Castor Corporation, year-end plan assets were $1,750,000. At the beginning of the year, plan assets were $1,350,000. During the year, contributions to the pension fund were $170,000, while benefits paid were $140,000.
Calculate Castor’s actual
return on plan assets.
Ending plan
assets $1,750,000
Beginning plan
assets 1,350,000
Increase in plan
assets 400,000
Deduct:
Contributions $170,000
Less: benefits
paid (140,000 )
(30,000 )
Actual return on plan
assets $
370,000
Refer to the information for
Cotter Corp. in BE19–3, and provide a continuity schedule for the plan assets
for the year. Is the plan overfunded or underfunded?
In BE Cotter Corp. reports
the following information (in hundreds of thousands of dollars) to you about its
defined benefit pension plan for 2011:
Actual return on plan assets
……………………………… 11
Current service cost
…………………………………….. 21
Benefits paid to retirees
………………………………… 8
Interest cost
…………………………………………….. 9
Contributions from employer
…………………………… 20
Opening balance, accrued
benefit obligation (ABO) …… 92
Cost of plan amendment in
year ………………………… 13
Opening balance, fund assets
…………………………… 100
Provide a continuity
schedule for the ABO for the year.
Fund assets, opening
balance $100
Actual return on
assets 11
Contributions from
employer 20
Benefits paid to
retirees (8 )
Fund assets, ending
balance $123
Accrued benefit obligation
(BE 19-3) $(127 )
Plan assets at fair
value 123
Plan’s funded
status $ (4 )
Since the accrued benefit
obligation exceeds the plan assets, the plan is underfunded.
No comments:
Post a Comment