b. All periods preceding the date that a bargain purchase option becomes exercisable All periods representing renewals or extensions of the lease term at the lessor's option a. All periods beyond the date at which a bargain purchase option becomes excercisable 15. Which of the following is not included in a lease term? All periods, if any, covered by bargain renewal options a. Question 16-20 On December 31, Year 1 and Year 2, Smith Company had the following defined benefit pension plan balances 12/31/Y2 $2,165,000 $2,352,500 12/31/Y1 $1,900,000 $2,125,000 S Fair value of plan assets Projected Benefit Obligation Unrecognized prior service costs Unrecognized net gain Unrecognized net transition obligation 175,000 $157,500 S 250,500 S284,700 S 35,000 $ At December 31, Year 1, the employees participating in the plan had an average remaining service period of 10 years. During Year 2, the company completed the amortization of its unrecognized net transition obligation, made a contribution of $275,000, and paid benefits of $200,000. The Year 2 service cost was $300,000. The company uses an expected return on plan assets of 8% when calculating net periodic pension cost, but had an actual return on Plan A's assets of 10 % in Year 2. The company's discount rate is 6%. 16. What is the normal service costs for year 2? There are not enough facts given to determine this number b. $275,000 c. $200,000 d. $300,000 a. 17. What is the interest costs on the outstanding Projected benefit obligation for year 2? $152,000 b. $177,200- c. $127,500 d. $141,150 a. 18. What is the return on plan assets for year 2? a. $152,000 b. $173,200 $114,000 d. $129,900 C. 4