On January 1, 2015, Jeff Co.’s defined benefit pension plan had plan assets with a fair value of $750,000, and a projected plan obligation of $875,000. In addition:

Actual and expected return on plan assets – 7%

Interest cost – 9%

Service costs - $24,000

Unamortized prior service cost - $120,000

Employer contributions to the plan - $45,000

Distributions to employees from the plan - $60,000

Assume that pension expense is $80,000, what will be the amount in plan assets at December 31, 2015?

a). $735,000

b). $795,000

c). $787,500

d). $708,750

Answer rating: 100% (QA)

Calculation of amount in plan assets at December 31 20X2 Am... View the full answer