The following information is related to the defined benefit pension plan of Dreamworld Company for the year: Service cost $ 60,000 Contributions to pension plan 110,000 Benefits paid to retirees 150,000 Plan assets (fair value), January 1 640,000 Plan assets (fair value), December 31 750,000 Actual return on plan assets 150,000 PBO, January 1 900,000 PBO, December 31 960,000 Discount rate 10 Long-term expected return on plan assets 9 Assuming no other relevant data exist, what is the pension expense for the year? 1. A) $190,000. 2. B) $92,400. 3. C) $60,000. 4. D) $170,000.

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 5E
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The following information is related to the defined benefit pension plan of Dreamworld Company for the year:
Service cost
$60,000
Contributions to pension plan
110,000
Benefits paid to retirees
150,000
Plan assets (fair value), January 1
640,000
Plan assets (fair value), December 31
750,000
Actual return on plan assets
150,000
PBO, January 1
900,000
PBO, December 31
960,000
Discount rate
10
Long-term expected return on plan assets
9.
Assuming no other relevant data exist, what is the pension expense for the year?
1. A) $190,00O.
2. B) $92,400.
3. C) $60,000.
4. D) $170,000.
Transcribed Image Text:The following information is related to the defined benefit pension plan of Dreamworld Company for the year: Service cost $60,000 Contributions to pension plan 110,000 Benefits paid to retirees 150,000 Plan assets (fair value), January 1 640,000 Plan assets (fair value), December 31 750,000 Actual return on plan assets 150,000 PBO, January 1 900,000 PBO, December 31 960,000 Discount rate 10 Long-term expected return on plan assets 9. Assuming no other relevant data exist, what is the pension expense for the year? 1. A) $190,00O. 2. B) $92,400. 3. C) $60,000. 4. D) $170,000.
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