contestada

pension plan assets were $80 million at the beginning of the year and $83 million at the end of the year. the return on plan assets was 5%. at the end of the year, cash invested in the pension fund was $7 million. what was the amount of the retiree benefits paid by the trustee?

Respuesta :

The amount paid by the trustee to retiree benefits is equal to $8,000,000, considering pension plan assets value, return and cash invested.

Given information:

Pension plan asset at beginning = $80,000,000

pension plan asset at the end = $83,000,000

return = 5%*80,000,000 = $4,000,000

investment in pension fund = $7,000,000

Pension plan asset = Plan asset at the beginning of year + Actual return + Cash contribution - Retiree benefits

Retiree benefits = $80000000 + $4000000 + $7000000 -$83,000,000

retiree benefits = $8,000,000

A resource having economic worth that a person, business, or nation possesses or controls with the hope that it would someday be useful is referred to as an asset. The balance sheet of a business lists assets. They are separated into four categories: tangible, financial, fixed, and current. They are acquired or manufactured in order to raise a stock profit or improve the operation of the company.

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