Question - Bunny Hopping, Inc. sponsors a defined-benefit pension plan. The following data relate to the operation of the plan for the year 2013.
Service cost $150,000
Contributions to the plan $120,000
Actual return on plan assets $130,000
Projected benefit obligation (beginning of year) $1,800,000
Fair value of plan assets (beginning of year) $1,650,000
The expected return on plan assets and the settlement rate were both 10%. The amount of pension expense reported for 2013 is
$150,000.00.
$200,000.00.
$165,000.00.
$330,000.00.