What will be the interest cost due to the pension plan

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Company E discounts back its expected future pension payments using a rate of 4%, which is the yield on high quality bonds in its reporting currency, and expects to earn a return of 6% on its Plan Assets. Assume US GAAP convention.

Question 1: What will be the interest cost due to the pension plan (only) in fiscal year 2019?

Question 2: What will be the interest cost due to the pension plan (only) if Company G borrows $100m on the first day of fiscal 2019 and applies it to fund the Plan Assets?

Question 3: What will be the income reported in fiscal year 2019 due to holding the $400m Plan Assets (only)?

Question 4: What will be the income reported in fiscal year 2019 due to holding Plan Assets (only) if Company G borrows $100m on the first day of fiscal 2019 and applies it to fund the Plan Assets?

Reference no: EM132794386

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