The following data are for the pension plan for the employees of Nickels Company.
Nickels' contribution was $1,260,000 in 2008 and benefits paid were $1,125,000. Nickels esti-mates that the average remaining service life is 15 years.
-Assume that the actual return on plan assets in 2008 was $765,000. The unexpected gain on plan assets in 2008 was
A) $156,000.
B) $135,000.
C) $114,000.
D) $72,000.

Question

The following data are for the pension plan for the employees of Nickels Company.
  Nickels' contribution was $1,260,000 in 2008 and benefits paid were $1,125,000. Nickels esti-mates that the average remaining service life is 15 years.
-Assume that the actual return on plan assets in 2008 was $765,000. The unexpected gain on plan assets in 2008 was
A) $156,000. 
B) $135,000. 
C) $114,000. 
D) $72,000.

Quizplus · Accepted Answer

$765,000 - ($9,000,000 × .07) = $135,000

The Following Data Are for the Pension Plan for the Employees