Question

For Bonita Sports Corporation, year-end plan assets were $4,250,000. At the beginning of the year, plan assets were $3,974,000. During the year, contributions to the pension fund were $420,000, and benefits paid were $365,000. Compute Bonita Sport’s actual return on plan assets.

Answer 1

Answer:

Explanation:

Year-end plan assets were $4,250,000

At the beginning of the year, plan assets were $3,974,000

So Actual Return on Plan Assets = (4,250,000 - 3,974,000) - (420,000 - 365,000)

Actual Return on Plan Assets = 276,000 - (55,000)

Actual Return on Plan Assets = 221,000