Cmpute the between the actual and expected return on the


Return on the Pension Fund-Expected and Actual

Rasband Photography has a pension plan covering its 100 employees. Rasband anticipates a 11% return on its pension fund. The fund trustee furnishes Rasband with the following information relating to the pension fund for 2008:

January 1

FVPF

$1,500,000

 

Market-related value of the pension fund

 

 

(5-year weighted average)

1,350,000

During year

Actual return on the pension fund

110,000

December 31

FVPF

1,620,000

 

Market-related value of the pension fund

 

 

(5-year weighted average)

1,480,000

Compute the difference between the actual and expected return on the pension fund. How should the difference be treated in determining pension expense for 2008? Rasband bases expected return on the market-related value of the pension fund.

Solution Preview :

Prepared by a verified Expert
Cost Accounting: Cmpute the between the actual and expected return on the
Reference No:- TGS0821555

Now Priced at $20 (50% Discount)

Recommended (93%)

Rated (4.5/5)