Computation of Actual Return on the Pension Fund
Longlee Electrical Company maintains a fund to cover its pension plan. The following data relate to the fund for 2008:
|
January 1 |
FVPF |
$875,000 |
|
|
Market related value of the pension fund |
|
|
|
(5 year weighted average) |
715,000 |
|
During year |
Pension benefits paid |
62,000 |
|
|
Contributions made to the fund |
70,000 |
|
December 31 |
FVPF |
980,000 |
|
|
Market related value of the pension fund |
|
|
|
(5 year weighted average) |
730,000 |
Compute the 2008 actual return on the pension fund for Longlee Electrical.