Sandhill Importers provides the following pension plan information. Fair value of pension plan assets, January 1, 2020 $2,240,000
Fair value of pension plan assets, December 31, 2020 2,560,000
Contributions to the plan in 2020 253,000
Benefits paid retirees in 2020 329,000

From the data above, compute the actual return on the plan assets for 2020.

$396,000

Explanation:

Computation for the actual return on the plan assets for 2020

Fair value of pension plan assets, December 31, 2020 2,560,000

Fair value of pension plan assets, January 1, 2020 $2,240,000

Increase in fair value of plan assets $320,000

($2,560,000-$2,240,000)

Deduct: Contributions to the plan in 2020 $253,000

Less Benefits paid retirees in 2020 ($329,000)

($253,000-$329,000)

=($76,000)

Actual return on plan assets for 2020$ $396,000

($320,000+$76,000)

Therefore the actual return on the plan assets for 2020 will be $396,000

answertaxable income;