Question

Pension plan assets were $460 million at the beginning of the year. The return on plan assets was 5%. At the end of the year, retiree benefits paid by the trustee were $21 million and cash invested in the pension fund was $25 million. What was the amount of the pension plan assets at year-end

Answer 1

$487,000,000

Step-by-step explanation:

Year end pension plan asset

Plan asset beginning of year $460,000,000

+ Actual return(5%×460,000,000) $23,000,000

+ Cash contribution $25,000,000

- Retiree benefits $21,000,000

End of year pension plan asset $487,000,000