1 Smith, Inc. has a pension plan with the following data available for 2014 and 2015:

20142015

Service cost $30,000 $34,000

Interest cost $18,000 $20,000

Actual return on plan assets $15,000 $21,600

Beginning of year plan assets $200,000 $240,000

Settlement rate 8% 8%

Expected return on plan assets 8 % 8 %

Smith's pension expense for 2015 is:

$32,400.

$34,000.

$34,800.

$54,000.

2 Pona, Inc. has a defined benefit pension plan for its employees. The plan assets and projected benefit obligation at the beginning of the year were $608,000. The accumulated benefit obligation at the beginning of the year was $456,000. The expected return on plan assets was 8% while the actual return was 9%. The service cost for the year was

$130,841. The actuarially assumed discount rate was 7% and amortization of prior service costs was $17,750.

The interest cost for the year is:

$42,560.

$31,920.

$36,480.

$41,040.

3 The Brand Corporation's December 31, 2014 balance sheet reports a pension liability of $243,000. On December 31, 2014, the projected benefit obligation was $4,975,000, the fair value of the plan assets was $4,679,000, and the accumulated benefit obligation was $3,482,500. The December 31, 2014 balance sheet should report a pension liability totaling:

$243,000.

$296,000.

$4,975,000.

$3,482,500.

4 Which of the following is NOT a required disclosure pertaining to defined benefit pension plans?

A reconciliation of the beginning and ending projected benefit obligation balances

The retirement benefits that are expected to be paid in the next five years

The amount of pension expense and its components

The contributions to be made into the pension fund for each of the next ten years