Question

Skysong Importers provides the following pension plan information. Fair value of pension plan assets, January 1, 2017 $2,177,000 Fair value of pension plan assets, December 31, 2017 2,559,000 Contributions to the plan in 2017 309,000 Benefits paid retirees in 2017 359,000 From the data above, compute the actual return on the plan assets for 2017. Actual Return on Plan Assets for 2017 is:

Answer 1

Answer:

$432,000

Explanation:

The computation of the actual return on the plan assets for the year 2017 is shown below:

Fair Value of plan as Dec 31,2017                     $2,559,000

Less:

Fair Value of plan as Jan 1 , 2017                     (-$2,177,000)

Increase in fair value                                         $382,000

Less:-Contributions to the plan                        -$309,000

Add: Benefits to paid to retiree                          $359,000

Actual return on plan assets for 2017            $432,000