Question

The following information relates to the pension plan for the employees of Blossom Co.: 1/1/17 12/31/17...

The following information relates to the pension plan for the employees of Blossom Co.:

1/1/17 12/31/17 12/31/18
Accum. benefit obligation $ 10240000 $ 10660000 $ 13600000
Projected benefit obligation 10765000 11458000 15007000
Fair value of plan assets 9925000 11920000 13054000
AOCI – net (gain) or loss -0- (1612000 ) (1780000 )
Settlement rate (for year) 9% 9%
Expected rate of return (for year) 9% 6%


Blossom estimates that the average remaining service life is 16 years. Blossom's contribution was $1423000 in 2018 and benefits paid were $1087000.

The unexpected gain or loss on plan assets in 2018 is

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Answer #1
Answer
Fair value of plan assets (12/31/15)    $      13,054,000
Fair value of plan assets (12/31/14)    -$     11,920,000
$        1,134,000
Contribution -$       1,423,000
Benefiet paid $        1,087,000
Actual Return on Plant Asset $           798,000
Actual Return on Plant Asset $           798,000
Expected Return on Plant Asset $           715,200
(6% * 11920000)
Unexpected gain $             82,800
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