Reference no: EM132809050

The following information relates to the defined benefit pension plan of the McDonald Company

PV of defined benefit obligation, January 1        ?4,600,000

PV of defined 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

Interest income on plan assets                       450,000

Actuarial loss                                                 32,500

Employer contributions                                   425,000

Benefits paid to retirees                                   390,000

Discount rate                                                      10%

Problem 1: The net amount of remeasurement of the net defined benefit liability (asset) included in the defined benefit cost for 2002 would be

a. 77,500.

b. 47,500.

c. 32,500.

d. 12,500.