JAC operates a defined benefit pension plan for its employees.The fair value of the plan assets at 1 June 2008 was $3,100,000. JAC made contributions of $300,000 to the plan in the year to 31 May 2009 and the expected return on assets has been calculated at $190,000.The pension plan paid out a total of $225,000 in benefits in the period and the fair value of the plan assets at 31 May 2009 was $3,340,000.The actuarial gain or loss in respect of the pension plan assets of JAC’s defined benefit pension plan for the year ended 31 May 2009 is:
A. $125,000 loss
B. $25,000 loss
C. $25,000 gain
D. $125,000 gain
Answer: D
