The following information is related to the defined benefit pension plan of Dreamworld Company for the year:- **Service cost:** $60,000- **Contributions to pension plan:** $110,000- **Benefits paid to retirees:** $150,000- **Plan assets (fair value), January 1:** $640,000- **Plan assets (fair value), December 31:** $750,000- **Actual return on plan assets:** $150,000- **Projected Benefit Obligation (PBO), January 1:** $900,000- **Projected Benefit Obligation (PBO), December 31:** $960,000- **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:** - $60,000 - $170,000

Interest cost = PBO, January 1 x Discount rate = 900000 x 10% = $90,000

The following information is related to the defined benefit pension plan of Dreamworld Company for the year: Service cost Contributions to pension plan Benefits paid to retirees Plan assets (fair value), January 1 Plan assets (fair value), December 31 $ 60,000 110,000 150,000 640,000 750,000 Actual return on plan assets 150,000 PBO, January 1 PBO, December 31 900,000 960,000 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 $60,000. $170,000. 12 of 39 Next > K Prev

The following information is related to the defined benefit pension plan of Dreamworld Company for the year: Service cost Contributions to pension plan Benefits paid to retirees Plan assets (fair value), January 1 Plan assets (fair value), December 31 $ 60,000 110,000 150,000 640,000 750,000 Actual return on plan assets 150,000 PBO, January 1 PBO, December 31 900,000 960,000 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 $60,000. $170,000. 12 of 39 Next > K Prev

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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