CFA Practice Question

There are 334 practice questions for this study session.

CFA Practice Question

The following information pertains to Westminster Company's defined benefit pension plan for 2011:

Fair value of Plan Assets, 1/1 $350,000
Fair value of Plan Assets, 12/31 $500,000
Employer contributions $180,000
Benefits paid out $90,000

What is Sunset's actual return on plan assets for the year ended 2011?
A. $150,000
B. $60,000
C. $240,000
Explanation: The computation is as follows:

Increase in fair value of plan $150,000
Less: increase from contributions [180,000]
Add back: decrease from benefits paid 90,000
Actual Return: 60,000

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