1. Bloomfield Bakers accounts for its investment in Clor Confectionary under the equity method. Bloomfield carried the Clor investment at $150,000 and $165,000 at December 31, 2016 and 2017, respectively. During 2017 Clor recognized $80,000 of net income and paid dividends of $30,000. From December 31, 2016 to December 31, 2017 Clors market capitalization (market value) increased by $10,000. Assuming that Bloomfield owned the same percentage of Clor throughout 2017, their percentage ownership must have been:

A. 15%.

B. 20%.

C. 25%.

D. 30%.

E. 40%.

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2. The following data pertains to Havanas Pension plan: Beginning balance of PBO $6,000, ending balance of PBO $6,654, discount rate used 5%. New Loss to PBO during the year due to change in assumptions is $150. There were no plan amendments this year. Retirees were paid $50 at the end of the year. Havana contributed $54 to the plan at the end of the year. What is the service cost for Havanas plan?

A. $454.

B. $300.

C. $254.

D. $200.

E. Cannot be determined from the data available.

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