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Check my work mode : This shows what is correct or incorrect for the work you have completed so far. it does not indicate completion Return to question 4 Exercise 17-15 Pension spreadsheet [LO17-8) A partially completed pension spreadsheet showing the relationships among the elements that comprise the defined benefit pension plan of Universal Products is given below The actuary's discount rate is 5%. Al the end of 2016, the pension formula was creating a prior service cost of S2 40,000 The expected rate of return on assets was 8%, and the average remaining service life of the active employee group is 20 years in the current year as well as the previous two years Required: Fill in the missing amounts. (Enter credit amounts with a minus sign and debit amounts with a positive sign) O Answer is complete but not entirely correct Prior ian cent AssetsCost Loss Pension AOCI Expense Liability) Cash Asset 740 000 120) s0) Jan. 1, 2018 58 (58) 58 Adjust for 12120 00 Net lors

Explanation / Answer

ANS

EXPECTED RETURN ON ASSETS = 8%

EXPECTED RETURN ON ASSETS WOULD BE $740 * 8% = $59.2

HENCE, EXPECTED RETURN ON ASSETS ARE $59.2 INSTEAD OF $58.

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