(Computation of Actual Return, Gains and Losses, Corridor Test, and Pension Expense) Erickson Company sponsors a defined benefit pension plan. The corporation’s actuary provides the following information about the plan.
Vested benefit obligation
Accumulated benefit obligation
Projected benefit obligation
Plan assets (fair value)
Settlement rate and expected rate of return
Service cost for the year 2012
Contributions (funding in 2012)
Benefits paid in 2012
(a) Compute the actual return on the plan assets in 2012.
(b) Compute the amount of the other comprehensive income (G/L) as of December 31, 2012. (Assume the January 1, 2012, balance was zero.)
(c) Compute the amount of net gain or loss amortization for 2012 (corridor approach).
(d) Compute pension expense for 2012.