The Carrasco Company has provided you the following information pertaining to its defined benefit pension plan that was adopted on January 1, 20X1: The service cost was $750,000 during 20X1 and $1,125,000 during 20X2. The contribution to the pension plan was $600,000 on December 31, 20X1 and $1,200,000 on December 31, 20X2. The actuarially determined discount rate and the expected return on plan assets are both 10%. The actual return on plan assets was 10.5%. Retirement benefits pertaining to years of service prior to 20X1 were not granted to the employees. What is the pension expense for the year ended December 31, 20X2? Multiple Choice $1,140,000 $1,065,000 $1,200,000 $1,137,000
The Carrasco Company has provided you the following information pertaining to its defined benefit pension plan that was adopted on January 1, 20X1: The service cost was $750,000 during 20X1 and $1,125,000 during 20X2. The contribution to the pension plan was $600,000 on December 31, 20X1 and $1,200,000 on December 31, 20X2. The actuarially determined discount rate and the expected return on plan assets are both 10%. The actual return on plan assets was 10.5%. Retirement benefits pertaining to years of service prior to 20X1 were not granted to the employees. What is the pension expense for the year ended December 31, 20X2? Multiple Choice $1,140,000 $1,065,000 $1,200,000 $1,137,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Carrasco Company has provided you the following information pertaining to its defined benefit pension plan that was adopted on January 1, 20X1:
- The service cost was $750,000 during 20X1 and $1,125,000 during 20X2.
- The contribution to the pension plan was $600,000 on December 31, 20X1 and $1,200,000 on December 31, 20X2.
- The actuarially determined discount rate and the expected return on plan assets are both 10%.
- The actual return on plan assets was 10.5%.
- Retirement benefits pertaining to years of service prior to 20X1 were not granted to the employees.
What is the pension expense for the year ended December 31, 20X2?
Multiple Choice
-
$1,140,000
-
$1,065,000
-
$1,200,000
-
$1,137,000
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