On January 1, 2018,Gillock Climbing Academy instituted a defined benefit pension plan for its employees. The annual service cost for each year of 2018 and 2019 was $600,000. The interest rate used to determine the projected benefit obligation is 10%. Both the actual and the expected return on plan assets are 8% for both years. Gillock funded the plan in the amount of $400,000 each January 1, beginning on January 1, 2018.
-An employer reports a pension loss when:

Question

On January 1, 2018,Gillock Climbing Academy instituted a defined benefit pension plan for its employees. The annual service cost for each year of 2018 and 2019 was $600,000. The interest rate used to determine the projected benefit obligation is 10%. Both the actual and the expected return on plan assets are 8% for both years. Gillock funded the plan in the amount of $400,000 each January 1, beginning on January 1, 2018. 
-An employer reports a pension loss when:

Quizplus · Accepted Answer

An employer reports a pension loss when the return on plan assets is lower than expected. In this case, the expected return on plan assets is 8%, but if the actual return is lower than 8%, then the employer would experience a pension loss. A change in assumptions that causes the projected benefit obligation to be less than expected would result in a pension gain for the employer. Retiree benefits paid out more than expected would also result in a loss, but this does not appear to be the case in this scenario. The accumulated benefit obligation is not relevant to the calculation of a pension loss.

On January 1, 2018,Gillock Climbing Academy Instituted a Defined Benefit