Calculate the expected return on plan assets for the year using the following facts:

Market$-$related value of plan assets $($based on a calculated value$)$ at beginning of the

year: $$7,500$

Net adjustments $($contributions and benefit payments during the year$)$: $$-500$

Expected average market$-$related value of plan assets during the year: $$7,000$

Fair value of plan assets at beginning of the year: $$7,000$

Net Adjustments $($contributions and benefit payments during the year$)$: $$-500$

Expected average fair value of plan assets during the year: $$6,500$

Expected long$-$term rate of return: $8\%$

Discount rate: $6\%$

Defined benefit obligation beginning of the year: $10,000$

$($Select the best answer.$)$

a$.$ O The expected return on plan assets for the year is $$7,000$ X$\mathrm{.}08=$$$560$

b$.$ O The expected return on plan assets for the year is $$6,500$ X$\mathrm{.}06=$ $$390$

c$.$ O There is no expected return on plan assets. The net interest cost is $10,000-7,000-$

$500=$ $$2,500$ x $6\%=$ $$150$

d$.$ O There is no expected return on plan assets. The net interest cost is

$$10,000-$$$7,000-$$$500=$ $$2,500$ x $8\%=$ $$200$