The following data are for the pension plan for the employees of Lockett Company.
1/1/14
12/31/14
12/31/15
Accumulated benefit obligation
$2,500,000
$2,600,000$3,400,000
Projected benefit obligation
2,700,000
2,800,000 3,700,000
Plan assets (at fair value)
2,300,000
3,000,000 3,300,000
AOCL-net loss
580,000
500,000
Settlement rate (for year)
10%
9%
Expected rate of return (for year)
8%
7%
Lockett's contribution was $420,000 in 2015 and benefits paid were $275,000. Lockett
estimates that the average remaining service life is 20 years.
4. The actual return on plan assets in 2015 was
a. $300,000.
b. $255,000.
c. $200,000.
d. $155,000.