The Carrasco Company Has Provided You the Following Information Pertaining

question 24

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.
-How much is the projected benefit obligation as of December 31,2015?

• A)$1,875,000
• B)$1,200,000
• C)$1,950,000
• D)$2,062,500

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Definitions:

Dilation And Curettage

A surgical procedure where the cervix is dilated and a special instrument is used to scrape the uterine lining for diagnostic or therapeutic purposes.

Tampons

Absorbent materials inserted into the vagina to absorb menstrual blood.

Nägele's Rule

A standard way of estimating the due date for a pregnancy based on the date of a woman's last menstrual period, adding one year, subtracting three months, and adding seven days to that date.

Menstrual Period

The monthly shedding of the uterine lining in women and female mammals, accompanied by bleeding.