Answer:
1. Actual return on Plat assets
= Ending plan assets - beginning assets - employer contribution + retirees payment
= 2,591 - 2,400 - 245 + 270
= $216,000
2. Gain(loss) on plan assets
= Actual return - expected return
= 216,000 - (10% * 2,400,000-beginning assets)
= ($24,000) loss
3. Service cost
= Ending Projected benefit obligation - Beginning Projected benefit obligation - Interest cost + Retiree benefits
= 2,501 - 2,300 - (7% * 2,300) + 264
= $304,000
4. Pension expense
= Interest cost + expected return + Amortization of prior service cost + amortization of net gain + Service cost
= Interest cost + expected return + (beginning prior service cost - ending prior cost) + (Beginning net gain - ending net gain - loss on plan asset) + Service cost
= (7% * 2,300) + 240 + (325 - 300) + (330 - 300 - 24) + 304
= $736,000
5. Average remaining service life of active employees
= (Beginning Net gain - expected return) / Amortization of net gain
= (330 - 300) / (330 - 300 - 24)
= 5 years
