The Carrasco Company Has Provided You the Following Information Pertaining

question 23

Multiple Choice

The Carrasco Company has provided you the following information pertaining to its defined benefit pension plan that was adopted on January 1, 2014:
• The service cost was $750,000 during 2014 and $1,125,000 during 2015.
• The contribution to the pension plan was $600,000 on December 31, 2014 and $1,200,000 on December 31, 2015.
• The actuarially determined discount rate and the expected return on plan assets are both 10%.
• The actual return on plan assets was 10.5%.
• Retirement benefits pertaining to years of service prior to 2014 were not granted to the employees.
-What is the pension expense for the year ended December 31,2015?

• A)$1,140,000
• B)$1,065,000
• C)$1,200,000
• D)$1,137,000

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Definitions:

Fragile X Syndrome

A genetic condition causing intellectual disability, behavioral and learning challenges, and various physical characteristics.

Chromosomal Defect

An abnormal condition or mutation affecting the chromosomes, leading to physical and/or mental developmental issues.

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A genetic disorder caused by the presence of an extra chromosome 21, characterized by physical and intellectual developmental delays.

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