The following information is related to the defined benefit pension plan of Avalanche Corporation for the year: Service cost $ 62,000 Contributions to pension plan 118,000 Benefits paid to retirees 156,000 Plan assets (fair value), January 1 641,000 Plan assets (fair value), December 31 758,000 Actual return on plan assets 155,000 PBO, January 1 925,000 PBO, December 31 923,500 Discount rate 10 % Long-term expected return on plan assets 9 % Assuming no other relevant data exist, what is the pension expense for the year? Multiple Choice $62,000. $89,810. $96,810. $154,500.
The following information is related to the defined benefit pension plan of Avalanche Corporation for the year: Service cost $ 62,000 Contributions to pension plan 118,000 Benefits paid to retirees 156,000 Plan assets (fair value), January 1 641,000 Plan assets (fair value), December 31 758,000 Actual return on plan assets 155,000 PBO, January 1 925,000 PBO, December 31 923,500 Discount rate 10 % Long-term expected return on plan assets 9 % Assuming no other relevant data exist, what is the pension expense for the year? Multiple Choice $62,000. $89,810. $96,810. $154,500.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The following information is related to the defined benefit pension plan of Avalanche Corporation for the year:
| Service cost | $ | 62,000 | ||
| Contributions to pension plan | 118,000 | |||
| Benefits paid to retirees | 156,000 | |||
| Plan assets (fair value), January 1 | 641,000 | |||
| Plan assets (fair value), December 31 | 758,000 | |||
| Actual return on plan assets | 155,000 | |||
| PBO, January 1 | 925,000 | |||
| PBO, December 31 | 923,500 | |||
| Discount rate | 10 | % | ||
| Long-term expected return on plan assets | 9 | % | ||
Assuming no other relevant data exist, what is the pension expense for the year?
Multiple Choice
-
$62,000.
-
$89,810.
-
$96,810.
-
$154,500.
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