Question

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

Multiple Choice

A. $193,000.

B. $312,000.

C. $225,000.

D. $199,700.

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Answer #1

Calculation Pension Expense:

Service Cost $190,000.00
Interest Cost $35,000.00
Expected return (256000 x 10%) $(25,300.00)
Pension Expenses $199,700.00

Working Notes:

Expected rate of return =  Beginning plan asset balance*expected rate  = 253,000x10%

Therefore, Option D is correct.

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Multiple Choice A. $193,000. B. $312,000. C. $225,000. D. $199,700. Bissell Company received the following reports...
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