Cullumber estimates that the average remaining service life is 16 years. Cullumber's contribution was $ 1213000 in 2021 and benefits paid were $ 877000. The actual return on plan assets in 2021 is a. $ 2011000. b. $ 1134000. c. $ 798000. d. $ 336000.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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he following information relates to the pension plan for the employees of Cullumber Co.:

(See Image)

Cullumber estimates that the average remaining service life is 16 years. Cullumber's contribution was $ 1213000 in 2021 and benefits paid were $ 877000.

The actual return on plan assets in 2021 is

a. $ 2011000.
b. $ 1134000.
c. $ 798000.
d. $ 336000.
1/1/20
12/31/20
12/31/21
Accum. benefit obligation
$ 8140000
2$
8560000
$ 11500000
Projected benefit obligation
8665000
9358000
12907000
Fair value of plan assets
7825000
9820000
10954000
AOCI - net (gain) or loss
-0-
(1402000 )
( 1570000 )
Settlement rate (for year)
11%
11%
Expected rate of return (for year)
8%
7%
Transcribed Image Text:1/1/20 12/31/20 12/31/21 Accum. benefit obligation $ 8140000 2$ 8560000 $ 11500000 Projected benefit obligation 8665000 9358000 12907000 Fair value of plan assets 7825000 9820000 10954000 AOCI - net (gain) or loss -0- (1402000 ) ( 1570000 ) Settlement rate (for year) 11% 11% Expected rate of return (for year) 8% 7%
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