Description of this paper

"The following information relates to the defined...

Description

Solution


Question

"The following information relates to the defined benefit pension plan of the McDonald Company for the year ending December 31, 2011: Projected benefit obligation, January 1 .............. $4,600,000 Projected benefit obligation, December 31 ............ 4,729,000 Fair value of plan assets, January 1 ................. 5,035,000 Fair value of 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 rate ...................................... 10% The net periodic pension cost reported in the income statement for 2011 would be A) $11,500. B) $24,000. C) $36,500. D) $59,000.,I would also like you to look into this answer as well, I think $59,000 is too high, I came up with $36,000. This leads me to believe (C) would be the closest answer, but I am missing something in my computation.

 

Paper#7986 | Written in 18-Jul-2015

Price : $25
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