Hudson Company\'s actuary has provided the following information concerning the

Question

Hudson Company's actuary has provided the following information concerning the company's defined benefit pension plan at the end of 2013:

Fair value of plan assets (1/1/2013) $350,000

Actual projected benefit obligation (1/1/2013) 360,000

Expected projected benefit obligation (1/1/2013) 424,000

Average remaining service life of employees 10 years

The difference between the actual and expected projected benefit obligation first occurred in 2012.

Required:

Compute the amount of the gain or loss for the Hudson's pension plan at the beginning of 2013.

at beginning of 2013 $ NEED THE ANSWER

Compute the amount of the net gain or loss to include in Hudson's pension expense for 2013. Indicate whether it is an addition to or a subtraction from pension expense.

Pension expense $ NEED THE ANSWER

Explanation / Answer

$ Actual projected benefit obligation          3,60,000 Less:Fare market value of plan asset as on 1/1/2013 -3,50,000 Gain 10,000

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