Solution-Discuss the long-term expected rate of return on

Discuss the long-term expected rate of return on plan assets

Reference no: EM131754821

Fox Company received the following reports of its defined benefit pension plan for the current calendar year:

PBO		Plan assets
Balance, January 1	$600,000	Balance, January 1	$500,000
Service cost	360,000	Actual return	50,000
Interest cost	64,000	Annual contribution	220,000
Benefits paid	(90,000)	Benefits paid	(90,000)
Balance, December 31	$934,000	Balance, December 31	$680,000

The long-term expected rate of return on plan assets is 8%. Assuming no other data are relevant, what is the pension expense for the year?

A. $360,000.
B. $424,000.
C. $374,000.
D. $384,000.

Reference no: EM131754821

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Discuss the long-term expected rate of return on plan assets

Reference no: EM131754821

Reference no: EM131754821

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