Question

Redding Corp. reported the following information in its 2017 annual report (in millions). Plans' assets at fair value, January 1, 2017 $18,394 Actual return on plans assets 2,034 Company contributions 1,394 Benefits paid 1,792 Expected return on plan assets 1,981 What were the pension plan assets at the end of the year? A. $20,030 million B. $16,712 million C. $13,855 million D. $16,668 million E. None of the above

Answer 1

Answer:

Pension Plan Assets at end of year = $20,030

so correct option is A. $20,030 million

Explanation:

given data

Assets value =  $18,394

Actual Return = $2,034

Contribution = $1,394

Benefit Paid  = $1,792

to find out

What were the pension plan assets at the end of the year

solution

we get here Pension Plan Assets at end of year that is express as

Pension Plan Assets at end of year = Assets value  + Actual Return + Contribution - Benefit Paid    ..........................1

put here value we get

Pension Plan Assets at end of year = $18,394 + $2,034 + $1,394 - $1,792

Pension Plan Assets at end of year = $20,030

so correct option is A. $20,030 million