Linda Berstler Company sponsors a defined benefit pension plan. The corporation’s actuary provides the following information about the plan.
|
January 1, |
December 31, |
|
|
Vested benefit obligation |
$1,500 |
$1,900 |
|
Defined benefit obligation |
2,800 |
3,645 |
|
Plan assets (fair value) |
1,700 |
2,620 |
|
Discount rate and expected rate of return |
10% |
|
|
Pension asset/liability |
–0– |
? |
|
Unrecognized past service cost |
1,100 |
? |
|
Service cost for the year 2012 |
400 |
|
|
Contributions (funding in 2012) |
800 |
|
|
Benefits paid in 2012 |
200 |
The average remaining service life per employee is 20 years. The average time to vesting past service costs is 10 years.
Instructions
(a) Compute the actual return on the plan assets in 2012.
(b) Compute the amount of the unrecognized net gain or loss as of December 31, 2012. (Assume the January 1, 2012, balance was zero.)