Computation of Actual Return on the Pension Fund
Longlee Electrical Company maintains a fund to cover its pension plan. The following data relate to the fund for 2008:
|
January 1
|
FVPF
|
$875,000
|
|
|
Market-related value of the pension fund
|
|
|
|
(5-year weighted average)
|
715,000
|
|
During year
|
Pension benefits paid
|
62,000
|
|
|
Contributions made to the fund
|
70,000
|
|
December 31
|
FVPF
|
980,000
|
|
|
Market-related value of the pension fund
|
|
|
|
(5-year weighted average)
|
730,000
|
Compute the 2008 actual return on the pension fund for Longlee Electrical.