Use the following information for questions 80 through 84.
The following information relates to the pension plan for the employees of Turner Co.: Turner estimates that the average remaining service life is 16 years. Turner's contribution was $882,000 in 2015 and benefits paid were $658,000.
-The actual return on plan assets in 2015 is

Question

Use the following information for questions 80 through 84.
The following information relates to the pension plan for the employees of Turner Co.:  Turner estimates that the average remaining service life is 16 years. Turner's contribution was $882,000 in 2015 and benefits paid were $658,000.
-The actual return on plan assets in 2015 is

Quizplus · Accepted Answer

To calculate the actual return on plan assets, we need to use the formula: Actual return = (Ending plan assets - Beginning plan assets) + Contributions - Benefits paid. We don't have information on the beginning plan assets, but we can calculate the ending plan assets using the following formula: Ending plan assets = Beginning plan assets + Contributions - Benefits paid + Actual return. We know that Turner's contribution was $882,000 and benefits paid were $658,000, so the ending plan assets must be higher than the beginning plan assets by $224,000 ($882,000 - $658,000). Therefore, the actual return on plan assets must be at least $224,000. The only answer choice that is at least $224,000 is B: $532,000.

Use the Following Information for Questions 80 Through 84