During 2013, the Electric Company experienced a difference between its expected and actual projected benefit obligation. At the beginning of 2014, Electric's actuary notified them of the following accumulated information related to their plan: On December 31, 2014, Electric is in the process of calculating the net gain or loss to include in its pension expense for 2014. The average remaining service life of its employees is 10 years and there are no differences between the company's expected and annual rate of return on plan assets in 2014.
Required:
Compute the amount of the net gain or loss to include in the pension expense for 2014. Note whether it is an addition or subtraction to the pension expense.

Question

During 2013, the Electric Company experienced a difference between its expected and actual projected benefit obligation. At the beginning of 2014, Electric's actuary notified them of the following accumulated information related to their plan:  On December 31, 2014, Electric is in the process of calculating the net gain or loss to include in its pension expense for 2014. The average remaining service life of its employees is 10 years and there are no differences between the company's expected and annual rate of return on plan assets in 2014.
Required:
Compute the amount of the net gain or loss to include in the pension expense for 2014. Note whether it is an addition or subtraction to the pension expense.

Quizplus · Accepted Answer

The Answer of During 2013, the Electric Company experienced a difference between its expected and actual projected benefit obligation. At the beginning of 2014, Electric's actuary notified them of the following accumulated information related to their plan:  On December 31, 2014, Electric is in the process of calculating the net gain or loss to include in its pension expense for 2014. The average remaining service life of its employees is 10 years and there are no differences between the company's expected and annual rate of return on plan assets in 2014.
Required:
Compute the amount of the net gain or loss to include in the pension expense for 2014. Note whether it is an addition or subtraction to the pension expense.

During 2013, the Electric Company Experienced a Difference Between Its