Presented below is pension information related to Tyre Recycling Inc., for the calendar year 2019. The corporation uses ASPE. Current service costs $ 50,000 Contributions to the plan 55,000 Actual return on plan assets 40,000 Defined benefit obligation (beginning of year) 600,000 Fair value of plan assets (beginning of year) 400,000 Interest cost on the obligation 10% The pension expense to be reportedfor 2019 is Select one: a. $110,000. b. $70,000. c. $65,000. d. $50,000. e. None of the above.
Presented below is pension information related to Tyre Recycling Inc., for the calendar year 2019. The corporation uses ASPE. Current service costs $ 50,000 Contributions to the plan 55,000 Actual return on plan assets 40,000 Defined benefit obligation (beginning of year) 600,000 Fair value of plan assets (beginning of year) 400,000 Interest cost on the obligation 10% The pension expense to be reportedfor 2019 is Select one: a. $110,000. b. $70,000. c. $65,000. d. $50,000. e. None of the above.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 4E
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Question
Presented below is pension information related to Tyre Recycling Inc., for the calendar year 2019. The corporation uses ASPE.
The pension expense to be reportedfor 2019 is
Current service costs |
$ 50,000 |
Contributions to the plan |
55,000 |
Actual return on plan assets |
40,000 |
Defined benefit obligation (beginning of year) |
600,000 |
Fair value of plan assets (beginning of year) |
400,000 |
Interest cost on the obligation |
10% |
Select one:
a.
$110,000.
b.
$70,000.
c.
$65,000.
d.
$50,000.
e.
None of the above.
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