Ask Question
11 May, 19:51

Pension data for Fahy Transportation Inc. include the following: ($ in millions) Discount rate, 8% Expected return on plan assets, 11% Actual return on plan assets, 12% Projected benefit obligation, January 1 $ 780 Plan assets (fair value), January 1 750 Plan assets (fair value), December 31 800 Benefit payments to retirees, December 31 71 Required: Assuming cash contributions were made at the end of the year, what was the amount of those contributions

+1
Answers (1)
  1. 11 May, 20:17
    0
    The amount of those contributions were $38.5 millions

    Explanation:

    According to the given data we have the following:

    Plan assets (fair value), December 31=$800

    Benefit payments to retirees, December 31=$71

    Plan assets (fair value), January 1=$750

    Actual return on Plan assets = $750*11% = $82.50

    In order to calculate the cash contributions, we have to make the following calculation:

    cash contributions=$800+$71 - $750-$82.50

    cash contributions=$38.5 millions

    The amount of those contributions were $38.5 millions
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Pension data for Fahy Transportation Inc. include the following: ($ in millions) Discount rate, 8% Expected return on plan assets, 11% ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers