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
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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
Transcribed Image Text: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
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