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The following information is for the pension plan for the employees of Carla Vista, Inc. 12/31/25 12/31/26 Accumulated benefit obligation $2,780,000 $3,740,000 Projected benefit obligation 3,080,000 3,980,000 Fair value of plan assets 3,180,000 3,610,000 AOCI - Net (gain) or loss (405,060) (460,000) Settlement rate 7% 7% Expected rate of return 6% 5% Carla Vista estimates that the average remaining service life is 15 years. Carla Vista's contribution was $504,000 in 2026 and the benefits paid were $250,000. (a) * Your answer is incorrect. Calculate the interest cost for 2026. Interest cost for 2026 17,000

The following information is for the pension plan for the employees of Carla Vista, Inc. 12/31/25 12/31/26 Accumulated benefit obligation $2,780,000 $3,740,000 Projected benefit obligation 3,080,000 3,980,000 Fair value of plan assets 3,180,000 3,610,000 AOCI - Net (gain) or loss (405,060) (460,000) Settlement rate 7% 7% Expected rate of return 6% 5% Carla Vista estimates that the average remaining service life is 15 years. Carla Vista's contribution was $504,000 in 2026 and the benefits paid were $250,000. (a) * Your answer is incorrect. Calculate the interest cost for 2026. Interest cost for 2026 17,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following information is for the pension plan for the employees of Carla Vista, Inc. 12/31/25 12/31/26 Accumulated benefit obligation $2,780,000 $3,740,000 Projected benefit obligation 3,080,000 3,980,000 Fair value of plan assets 3,180,000 3,610,000 AOCI - Net (gain) or loss (405,060) (460,000) Settlement rate 7% 7% Expected rate of return 6% 5% Carla Vista estimates that the average remaining service life is 15 years. Carla Vista's contribution was $504,000 in 2026 and the benefits paid were $250,000. (a) * Your answer is incorrect. Calculate the interest cost for 2026. Interest cost for 2026 17,000
Transcribed Image Text:The following information is for the pension plan for the employees of Carla Vista, Inc. 12/31/25 12/31/26 Accumulated benefit obligation $2,780,000 $3,740,000 Projected benefit obligation 3,080,000 3,980,000 Fair value of plan assets 3,180,000 3,610,000 AOCI - Net (gain) or loss (405,060) (460,000) Settlement rate 7% 7% Expected rate of return 6% 5% Carla Vista estimates that the average remaining service life is 15 years. Carla Vista's contribution was $504,000 in 2026 and the benefits paid were $250,000. (a) * Your answer is incorrect. Calculate the interest cost for 2026. Interest cost for 2026 17,000
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