The following information relates to the defined benefit pension plan of Nelson, Inc. 12/31/19 2,644,000 3,118,000 432,000 Projected benefit obligation Fair value of plan assets Accumulated OCI-net actuarial gain Settlement rate (for year) Expected rate of return (for year) 6% 8% The interest cost for 2020 is O $158,640 O $211,520 O $240,120 $280,140 O None of the above 12/31/20 4,002,000 3,328,000 480,000 6% 7% For 2020, Nelson estimates that the average remaining service life of its current employees is 8 years. Nelson's contribution to the plan was $364,000 in 2020 and benefits paid to retirees were $276,000,
The following information relates to the defined benefit pension plan of Nelson, Inc. 12/31/19 2,644,000 3,118,000 432,000 Projected benefit obligation Fair value of plan assets Accumulated OCI-net actuarial gain Settlement rate (for year) Expected rate of return (for year) 6% 8% The interest cost for 2020 is O $158,640 O $211,520 O $240,120 $280,140 O None of the above 12/31/20 4,002,000 3,328,000 480,000 6% 7% For 2020, Nelson estimates that the average remaining service life of its current employees is 8 years. Nelson's contribution to the plan was $364,000 in 2020 and benefits paid to retirees were $276,000,
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![The following information relates to the defined benefit pension plan of Nelson, Inc.
Projected benefit obligation
Fair value of plan assets
Accumulated OCI-net actuarial gain
Settlement rate (for year)
Expected rate of return (for year)
The interest cost for 2020 is
$158,640
$211,520
12/31/19
2,644,000
3,118,000
432,000
O $240,120
O $280,140
O None of the above
6%
8%
12/31/20
4,002,000
3,328,000
480,000
For 2020, Nelson estimates that the average remaining service life of its current employees is 8 years. Nelson's contribution to the plan was
$364,000 in 2020 and benefits paid to retirees were $276,000,
6%
7%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc7cdeda0-e51d-40f1-9e69-3ed0a65ba448%2Fc8a2dc39-289b-4b8c-86a9-39a0116ead7d%2Fz7he2b2_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The following information relates to the defined benefit pension plan of Nelson, Inc.
Projected benefit obligation
Fair value of plan assets
Accumulated OCI-net actuarial gain
Settlement rate (for year)
Expected rate of return (for year)
The interest cost for 2020 is
$158,640
$211,520
12/31/19
2,644,000
3,118,000
432,000
O $240,120
O $280,140
O None of the above
6%
8%
12/31/20
4,002,000
3,328,000
480,000
For 2020, Nelson estimates that the average remaining service life of its current employees is 8 years. Nelson's contribution to the plan was
$364,000 in 2020 and benefits paid to retirees were $276,000,
6%
7%
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