Smith, Inc. has a pension plan with the following data available for 20X1 and 20X2:     20X1 20X2 Service cost $ 30,000   $ 34,000   Interest cost $ 18,000   $ 20,000   Actual return on plan assets $ 15,000   $ 21,600   Beginning of year plan assets $ 200,000   $ 240,000   Discount rate   8 %   8 % Expected return on plan assets   8 %   8 %     The adjustment to OCI for gain or loss from the return on plan assets for 20X2 is:   Multiple Choice   $0.   $2,400 gain.   $2,400 loss.   unknown from information provided.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Smith, Inc. has a pension plan with the following data available for 20X1 and 20X2:

 

  20X1 20X2
Service cost $ 30,000   $ 34,000  
Interest cost $ 18,000   $ 20,000  
Actual return on plan assets $ 15,000   $ 21,600  
Beginning of year plan assets $ 200,000   $ 240,000  
Discount rate   8 %   8 %
Expected return on plan assets   8 %   8 %
 

 

The adjustment to OCI for gain or loss from the return on plan assets for 20X2 is:

 

Multiple Choice
  •  

    $0.

  •  

    $2,400 gain.

  •  

    $2,400 loss.

  •  

    unknown from information provided.

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