Question 2 (3 points)

The following information relates to the defined benefit pension plan of the Blue Cloud Company for the year ending December 31, 2013:

Projected benefit obligation, January 1	$4,600,000
Projected benefit obligation, December 31	4,729,000
Fair value of pension plan assets, January 1	5,035,000
Fair value of pension plan assets, December 31	5,565,000
Expected return on plan assets	450,000
Amortization of deferred gain	32,500
Employer contributions	425,000
Benefits paid to retirees	390,000
Settlement interest rate	11%

Determine the actual return on the pension fund for the year is:

choose the correct answer

a)$105,000

b)$495,000

c)$503,500

d)$530,000