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 expense for the year ended December 31,2015?
A) $1,140,000
B) $1,065,000
C) $1,200,000
D) $1,137,000
Correct Answer:
Verified
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