Gruber Enterprises started its defined benefit pension plan on January 1, Year 1. By the beginning of Year 3, the company had accumulated $300,000 in pension plan assets and was already making benefit payments to its employees. During Year 3, Gruber paid out $20,000 in benefits and contributed $70,000 to the plan. The plan assets had a fair market value of $377.000 What was the amount of the return on plan assets in Year 3? O S7,000 O $27,000 O $37,000 O $47,000

Gruber Enterprises started its defined benefit pension plan on January 1, Year 1. By the beginning of Year 3, the company had accumulated $300,000 in pension plan assets and was already making benefit payments to its employees. During Year 3, Gruber paid out $20,000 in benefits and contributed $70,000 to the plan. The plan assets had a fair market value of $377.000 What was the amount of the return on plan assets in Year 3? O S7,000 O $27,000 O $37,000 O $47,000

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Concept explainers

Employee Benefits

In an organization employees are the most important resource and most important asset. They can lead an organization to the sky or can be the reason for unsuccessful of business. Therefore, it is very much important that employees of an organization should be satisfied by the environment of the organization and most importantly with the salary, wages incentives, etc.

Question

Gruber Enterprises started its defined benefit pension plan on January 1, Year 1. By the beginning of Year 3, the company had
accumulated $300,000 in pension plan assets and was already making benefit payments to its employees. During Year 3, Gruber
paid out $20,000 in benefits and contributed $70,000 to the plan. The plan assets had a fair market value of 5377.000. What was
the amount of the retun on plan assets in Year 3?
O S7,000
O $27,000
O 537,000
O $47,000

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