The following data are for the pension plan for the employees of Lockett Company:
The following data are for the pension plan for the employees of Lockett Company:1/1/1012/31/1012/31/11Accumulated benefit obligation$7,500,000$7,800,000$10,200,000Projected benefit obligation 8,100,000 8,400,000 11,100,000Plan assets (at fair value) 6,900,000 9,000,000 9,900,000AOCL-net loss-0-1,440,000 1,500,000Settlement rate (for year)10%9%Expected rate of return (for year)8%7%Locketts contribution 2011=$1,260,000Benefits paid 2011=$1,125,000Estimates average remaining service life = 15 years1. The actual return on plan assets in 2011 was:a) $600,000b) $900,000c) $765,000d) $465,0002. Assume that the […]
