7. The following information is related to the pension plan of Long, Inc. for 2018. Actual...

 

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7. The following information is related to the pension plan of Long, Inc. for 2018. Actual return on plan assets $400,000 Amortization of net gain 165,000 300,000 Amortization of prior service cost due to increase in benefits Expected return on plan assets Interest on projected benefit obligation 460,000 725,000 1,700,000 Service cost Pension expense for 2018 is A) $2,430,000. B) $2,160,000. C) $2,100,000. D) $2,490,000. Use the following to answer questions 8-9: On January 1, 2018, Newlin Co. has the following balances: Projected benefit obligation $3,500,000 Fair value of plan assets 3,000,000 The settlement rate is 10%. Other data related to the pension plan for 2018 are: Service cost $300,000 Amortization of prior service costs due to increase in benefits 100,000 Contributions 500,000 Benefits paid 225,000 Actual return on plan assets Amortization of net gain 395,000 30,000 8. The fair value of plan assets at December 31, 2018 is A) $3,440,000. B) $3,670,000. C) $3,895,000. D) $3,500,000. 9. The balance of the projected benefit obligation at December 31, 2018 is A) $3,900,000. B) $3,850,000. C) $3,925,000. D) $4,150,000. 7. The following information is related to the pension plan of Long, Inc. for 2018. Actual return on plan assets $400,000 Amortization of net gain 165,000 300,000 Amortization of prior service cost due to increase in benefits Expected return on plan assets Interest on projected benefit obligation 460,000 725,000 1,700,000 Service cost Pension expense for 2018 is A) $2,430,000. B) $2,160,000. C) $2,100,000. D) $2,490,000. Use the following to answer questions 8-9: On January 1, 2018, Newlin Co. has the following balances: Projected benefit obligation $3,500,000 Fair value of plan assets 3,000,000 The settlement rate is 10%. Other data related to the pension plan for 2018 are: Service cost $300,000 Amortization of prior service costs due to increase in benefits 100,000 Contributions 500,000 Benefits paid 225,000 Actual return on plan assets Amortization of net gain 395,000 30,000 8. The fair value of plan assets at December 31, 2018 is A) $3,440,000. B) $3,670,000. C) $3,895,000. D) $3,500,000. 9. The balance of the projected benefit obligation at December 31, 2018 is A) $3,900,000. B) $3,850,000. C) $3,925,000. D) $4,150,000.

Answer rating: 100% (QA)

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