The following information is for the pension plan for the employees of Payne, Inc. Payne estimates that the average remaining service life is 15 years. Payne's contribution was $520,000 in 2015 and benefits paid were $260,000.
Instructions
(a) Calculate the interest cost for 2015.
(b) Calculate the actual return on plan assets in 2015.
(c) Calculate the unexpected gain or loss in 2015.(d) Calculate the corridor for 2015 and the amortization of the net gain for 2015.

Question

The following information is for the pension plan for the employees of Payne, Inc.  Payne estimates that the average remaining service life is 15 years. Payne's contribution was $520,000 in 2015 and benefits paid were $260,000.
Instructions
(a) Calculate the interest cost for 2015.
(b) Calculate the actual return on plan assets in 2015.
(c) Calculate the unexpected gain or loss in 2015.(d) Calculate the corridor for 2015 and the amortization of the net gain for 2015.

Quizplus · Accepted Answer

The Answer of The following information is for the pension plan for the employees of Payne, Inc.  Payne estimates that the average remaining service life is 15 years. Payne's contribution was $520,000 in 2015 and benefits paid were $260,000.
Instructions
(a) Calculate the interest cost for 2015.
(b) Calculate the actual return on plan assets in 2015.
(c) Calculate the unexpected gain or loss in 2015.(d) Calculate the corridor for 2015 and the amortization of the net gain for 2015.

The Following Information Is for the Pension Plan for the Employees