The following information relates to Hatami Company's defined benefit pension plan during the current reporting year: Plan assets at fair value, January 1 $ 600,000,000 Expected return on plan assets 50,000,000 Actual return on plan assets 40,000,000 Contributions to the pension fund (end of year) 90,000,000 Amortization of net loss 0 Pension benefits paid (end of year) 32,000,000 Pension expense 60,000,000 Required: Determine the balance of pension plan assets at fair value on December 31. (Enter your answers in millions. Amounts to be deducted should be indicated with a minus sign.)

Question

Lacey Bauer

Business

29 December, 14:27

The following information relates to Hatami Company's defined benefit pension plan during the current reporting year: Plan assets at fair value, January 1 $ 600,000,000 Expected return on plan assets 50,000,000 Actual return on plan assets 40,000,000 Contributions to the pension fund (end of year) 90,000,000 Amortization of net loss 0 Pension benefits paid (end of year) 32,000,000 Pension expense 60,000,000 Required: Determine the balance of pension plan assets at fair value on December 31. (Enter your answers in millions. Amounts to be deducted should be indicated with a minus sign.)

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Kylan Frye · Answer 1

Complete plan is given below:

Explanation:

Computation of balance. pension plan assets at fair value on December 31

Plan Assets at Fair value, January 1=$600,000,000 Add : Actual return on Plan Assets=$40,000,000 Add : Contribution tone Pension Fund (End of the Year) = $90,000,000 Less: Pension Benefits Paid=$32,000,000

Plan Assets at Fair value, December 31=$698,000,000