The following information relates to the defined benefit pension plan for the McDonald Company for the year ending December31, 2019. Present value of defined benefit obligation, Jan. 1 4,600,000 Present value of defined benefit obligation, Dec. 31 4,729,000 Fair value of plan assets, January 1 5,035,000 Fair value of plan assets, December 31 5,565,000 Expected return on plan assets 450,000 Amortization of deferred gain 32,500 Employer contributions 425,000 Benefits paid to retirees 390,000 Discount rate 10% The return on plan assets for the year is a. 105,000 b. 495,000 c. 503,500 d. 530,000
The following information relates to the defined benefit pension plan for the McDonald Company for the year ending December31, 2019. Present value of defined benefit obligation, Jan. 1 4,600,000 Present value of defined benefit obligation, Dec. 31 4,729,000 Fair value of plan assets, January 1 5,035,000 Fair value of plan assets, December 31 5,565,000 Expected return on plan assets 450,000 Amortization of deferred gain 32,500 Employer contributions 425,000 Benefits paid to retirees 390,000 Discount rate 10% The return on plan assets for the year is a. 105,000 b. 495,000 c. 503,500 d. 530,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The following information relates to the defined benefit pension plan for the McDonald
Company for the year ending December31, 2019.
Present value of defined benefit obligation, Jan. 1 4,600,000
Present value of defined benefit obligation, Dec. 31 4,729,000
Fair value of plan assets, January 1 5,035,000
Fair value of plan assets, December 31 5,565,000
Expected return on plan assets 450,000
Amortization of deferred gain 32,500
Employer contributions 425,000
Benefits paid to retirees 390,000
Discount
The return on plan assets for the year is
a. 105,000 b. 495,000 c. 503,500 d. 530,000
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