The following information is related to the defined benefit pension plan of Havana for the year: Service cost Contributions to pension plan Benefit's paid to retirees Plan assets (fair value), January 1 Plan assets (fair value), December 31 Actual return on plan assets PB0, January 1 PBO, December 31 Discount rate $ 65,000 117,000 156,000 643,000 760,000 156,000 915,000 915,500 10% Long-term expected return on plan assets 9% Assuming no other relevant data exist, what is the pension expense for the year?
The following information is related to the defined benefit pension plan of Havana for the year: Service cost Contributions to pension plan Benefit's paid to retirees Plan assets (fair value), January 1 Plan assets (fair value), December 31 Actual return on plan assets PB0, January 1 PBO, December 31 Discount rate $ 65,000 117,000 156,000 643,000 760,000 156,000 915,000 915,500 10% Long-term expected return on plan assets 9% Assuming no other relevant data exist, what is the pension expense for the year?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![The following information is related to the defined benefit pension plan of Havana 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
Actual return on plan assets
PBO, January 1
PBO, December 31
Discount rate
Long-term expected return on plan assets
$ 65,000
117,000
156,000
643,000
760,000
156,000
915,000
915,500
3:09
10%
9%
Assuming no other relevant data exist, what is the pension expense for the year?
Multiple Choice
$96,630.
$156,500.
2 of 16
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Transcribed Image Text:The following information is related to the defined benefit pension plan of Havana 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
Actual return on plan assets
PBO, January 1
PBO, December 31
Discount rate
Long-term expected return on plan assets
$ 65,000
117,000
156,000
643,000
760,000
156,000
915,000
915,500
3:09
10%
9%
Assuming no other relevant data exist, what is the pension expense for the year?
Multiple Choice
$96,630.
$156,500.
2 of 16
Next >
< Prev
Mc
Graw
Hill
MacBook Air
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