Net periodic pension cost reported in the income statement


The following information relates to the defined benefit pension plan of the McDonald Company for the year ending December 31, 2011:

Projected benefit obligation, January 1 .............. $4,600,000
Projected benefit 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
Expected return on plan assets ....................... 450,000
Amortization of deferred gain ........................ 32,500
Employer contributions ............................... 425,000
Benefits paid to retirees ............................ 390,000
Settlement rate ...................................... 10%

The net periodic pension cost reported in the income statement for 2011 would be

A) $11,500.

B) $24,000.

C) $36,500.

D) $59,000.

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Accounting Basics: Net periodic pension cost reported in the income statement
Reference No:- TGS074498

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