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The Following Information Is Related to the Pension Plan of Long

Question 77

Multiple Choice

The following information is related to the pension plan of Long, Inc. for 2015.  Actual return on plan assets $200,000 Amortization of net gain 82,500 Amortization of prior service cost due to increase in benefits 150,000 Expected return on plan assets 230,000 Interest on projected benefit obligation 362,500 Service cost 850,000\begin{array}{lr}\text { Actual return on plan assets } & \$ 200,000 \\\text { Amortization of net gain } & 82,500 \\\text { Amortization of prior service cost due to increase in benefits } & 150,000 \\\text { Expected return on plan assets } & 230,000 \\\text { Interest on projected benefit obligation } & 362,500 \\\text { Service cost } & 850,000\end{array} Pension expense for 2015 is


A) $1,245,000.
B) $1,215,000.
C) $1,080,000.
D) $1,050,000.

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