The Carrasco Company Has Provided You the Following Information Pertaining

question 73

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 plan fund balance as of December 31,2015?

• A)$1,863,000
• B)$1,800,000
• C)$1,953,750
• D)$1,860,000

---

Definitions:

Informally

In a casual or unofficial manner, outside the contexts of formal or structured settings.

Attitude-Behavior Correspondence

The degree to which an individual's attitude is reflected in their behavior.

Judgment

The ability to make considered decisions or come to sensible conclusions based on a critical assessment of facts and information.

Context

The circumstances or background that surround and give meaning to an event, statement, or idea.