59) Merciful Industries has a beginning PBO balance of $900,000 and a settlement rate of 6%. The expected return is 7%. The beginning balance of pension plan assets is $1,000,000. What is the journal entry to record the expected return on plan assets? A) 70,000 Pension Plan Assets Pension Expense - Expected Return 70,000 B) Pension Expense Other Comprehensive Income 63,000 63,000 66,500 Pension Expense Pension Plan Assets 66,500 9,000 Pension Expense Other Comprehensive Income 9,000 60) Apple Plumbing reports actual returns on plan assets of $140,000, while the expected return was $121,000. In addition, an employee wellness program has resulted in changes in actuarial assumptions that result in an increase in the PBO of $24,000. What is the journal entry to record the gain on plan assets? A) Pension Plan Assets 19,000 OCI - Actuarial Gains/Losses 19,000 B) Pension Plan Assets Retained Earnings 19,000 19,000 C) Pension Plan Assets OCI - Pension Plan Gains/Losses 19,000 19,000 D) OCI - Pension Plan Gains/Losses Pension Plan Assets 19,000 19,000 67) Butler Products decided in 2020 to change inventory methods to more effectively report its results of operations. In the past, management has measured its ending inventories by the average cost method and they now believe that FIFO is a better representation of its profitability. Year Ended December 31, 2018 December 31, 2019 December 31, 2020 FIFO Inventory $250,000 390,000 240,000 Average Cost Inventory $195,000 329,000 190,000 Ignoring income tax, which one of the following journal entries correctly records the change in the accounting principle at January 1, 2020? A) No journal entry needed for a prospective application of the change in principle. B) Retained Earnings Inventory 61,000 61,000 61,000 Inventory Retained Earnings 61,000 56,000 Inventory Retained Earnings 56,000 Show Work