The Marino Company Has Provided You the Following Information Pertaining

question 105

Multiple Choice

The Marino 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 $950,000 during 2014 and $1,045,000 during 2015.
• The prior service cost amortization each year was $290,000.
• The contribution to the pension plan was $1,500,000 on December 31, 2014 and $1,800,000 on December 31, 2015.
• The actuarially determined discount rate and the expected return on plan assets was 10%.
• The actual return on plan assets was 9.5%.
• Retirement benefits pertaining to years of service prior to 2014 were granted to the employees. The prior service cost is being amortized over the remaining ten-year life of the employees.

-What is the pension expense for the year ended December 31,2015?

• A)$1,335,000
• B)$1,280,000
• C)$1,185,000
• D)$1,599,000

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Definitions:

Nonkeratinized Stratified Squamous Epithelium

A type of epithelium consisting of multiple layers of cells, found in moist areas of the body where protection against friction is required, without the surface layer of keratin.

Nervous Tissue

Specialized tissue in animals that is the main component of the nervous system, responsible for transmitting and processing signals.

Filters Blood

A vital function of the kidneys that involves removing waste products and excess substances from the blood, maintaining proper chemical balance.

Reticular Connective Tissue

A type of connective tissue that contains a network of reticular fibers, supporting the soft tissue of organs and forming the structural framework of the lymphatic system and bone marrow.