1. Chester Company has a defined benefit plan. The fair value of plan assets on January 1, 2005, was $1,500,000. No unrecognized net loss or gain existed. On December 31, 2005, the fair value of the plan assets was $1,860,000. Benefits paid to retirees equaled $300,000. Company contributions to the plan totaled $360,000. The settlement rate was 8 percent, and the expected long-term rate of return on plan assets was 10 percent. The actual return on plan assets was

a. $150,000.

b. $180,000.

c. $224,000.

d.$300,000.

2.The following information relates to Irasly Inc. at December 31, 2005:

Fair value of plan assets .............................$1,520,000

Market related asset value ............................ 1,440,000

Accumulated benefit obligation ........................ 1,960,000

Projected benefit obligation ..........................2,040,000

Unrecognized prior service cost .......................24,000

Prepaid/accrued pension cost ..........................0

The net defined benefit liability at dec 31, 2002, for Irasly Inc is

a. $0.

b. $440,000.

c.$480,000.

d.$520,000.

3.On January 1, 2005, Cubs Corporation adopted a defined benefit pension plan. The plan's service cost of $150,000 was fully funded at the end of 2005. Prior service cost was funded by a contribution of $60,000 in 2005. Amortization of prior service cost was $24,000 for 2005. What is the amount of Cub's prepaid pension cost at December 31, 2005?

a. $36,000

b. $60,000

c.$84,000

d.$90,000

Provide SOLUTIONS for each problem