Reference no: EM131831452

Question - Bunny Hopping, Inc. sponsors a defined-benefit pension plan. The following data relate to the operation of the plan for the year 2013.

Service cost $160,000

Contributions to the plan $130,000

Actual return on plan assets $135,000

Projected benefit obligation (beginning of year) $1,700,000

Fair value of plan assets (beginning of year) $1,800,000

The expected return on plan assets and the settlement rate were both 8%. The amount of pension expense reported for 2013 is:

$296,000.00.

$161,000.00.

$160,000.00.

$152,000.00.