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The following information relates to theAcirc;nbsp;defined benefit pension planAcirc;nbsp;of the McDonald Company for the year ending December...
The following information relates to the defined benefit pension plan of the McDonald Company for the year ending December 31, 2011:Projected benefit obligation, January 1 .............. $4,600,000Projected benefit obligation, December 31 ............ 4,729,000Fair value of plan assets, January 1 ................. 5,035,000Fair value of plan assets, December 31 ............... 5,565,000Expected return on plan assets ....................... 450,000Amortization of deferred gain ........................ 32,500Employer contributions ............................... 425,000Benefits paid to retirees ............................ 390,000Settlement rate ...................................... 10%The net periodic pension cost reported in the income statement for 2011 would beA) $11,500.B) $24,000.C) $36,500.D) $59,000.
