What is the fair value of the plan asset as of December 31, 2014

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 16E
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Fair value of plan asset, January 1, 2014                       2,000,000
Total actual return on plan asset:
   Interest income – actual                       200,000
   Gain on remeasurement                      100,000            300,000
Tax rate on defined benefit                                                15%
Expected rate of return on the asset                                  7%
Discount rate                                                                      6%
Contribution during the year                                            500,000

What is the fair value of the plan asset as of December 31, 2014?

 

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