C is corrent. The actual return on plan assets represents the return earned on accumulated pension fund assets. It is calculated as the difference in the fair value of plan assets at the beginning and the end of the period adjusted for contributions made to the plan and benefit payments made by the plan during the period. This calculation separates out the change in the FV of plan assets that is due to interest and dividends earned. The formula for determining the actual return is as follows:
| Actual Return | = | Ending plan assets | – | Beginning plan assets | + | Benefits | – | Contributions |
| $150,000 | = | ($525,000 | – | $350,000) | + | $85,000 | – | $110,000 |
A is incorrect. The actual return on plan assets represents the return earned on accumulated pension fund assets. It is calculated as the difference in the fair value of plan assets at the beginning and the end of the period adjusted for contributions made to the plan and benefit payments made by the plan during the period. This calculation separates out the change in the FV of plan assets that is due to interest and dividends earned. The formula for determining the actual return is as follows:
| Actual Return | = | Ending plan assets | – | Beginning plan assets | + | Benefits | – | Contributions |
| $150,000 | = | ($525,000 | – | $350,000) | + | $85,000 | – | $110,000 |
B is incorrect. The actual return on plan assets represents the return earned on accumulated pension fund assets. It is calculated as the difference in the fair value of plan assets at the beginning and the end of the period adjusted for contributions made to the plan and benefit payments made by the plan during the period. This calculation separates out the change in the FV of plan assets that is due to interest and dividends earned. The formula for determining the actual return is as follows:
| Actual Return | = | Ending plan assets | – | Beginning plan assets | + | Benefits | – | Contributions |
| $150,000 | = | ($525,000 | – | $350,000) | + | $85,000 | – | $110,000 |
D is incorrect. The actual return on plan assets represents the return earned on accumulated pension fund assets. It is calculated as the difference in the fair value of plan assets at the beginning and the end of the period adjusted for contributions made to the plan and benefit payments made by the plan during the period. This calculation separates out the change in the FV of plan assets that is due to interest and dividends earned. The formula for determining the actual return is as follows:
| Actual Return | = | Ending plan assets | – | Beginning plan assets | + | Benefits | – | Contributions |
| $150,000 | = | ($525,000 | – | $350,000) | + | $85,000 | – | $110,000 |
