Question

Information regarding the defined benefit pension plan of Chumlee Company included the following for 2021 ($ in millions):

Plan assets, January 1	$350
Plan assets, December 31	525
Retiree benefits paid (end of year)	85
Return on plan assets	50

What were the employer contributions to the pension plan at the end of 2021?

a.         $30 million

b.         $175 million

c.          $210 million

d.         $225 million

Answer 1

C) $ 210 million

Explanation :

Calculation for employer contributions to the pension plan at the end of 2021:

Particulars	Amounts ( In million )	Amounts (In million)
Plan assets on 31st December 2021		525
Plan assets on 1 January 2021	350
Add: Return on plan assets	50
Less: Retiree benefits paid( end of year)	85
Less: Net adjusted plan assets after all adjustment		315
Net employer contributions to the Pension plan at the end of 2021:		210