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Problem - Blossom, Inc. sponsors a defined-benefit pension plan. The following data relates to the operation of the plan for the year 2018.
Service cost $325000
Contributions to the plan 310000
Actual return on plan assets 250000
Projected benefit obligation (beginning of year) 3500000
Fair value of plan assets (beginning of year) 2300000
Required - The expected return on plan assets and the settlement rate were both 10%. Compute the amount of pension expense reported for 2018?
A. $445000.
B. $675000.
C. $325000.
D. $265000.
What are debits and credits? In your opinion, why do accountants debit asset accounts to increase them but credit liability accounts to increase them?
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