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Fox, Inc. has the following information related to its defined benefit pension plan: December 31, 20x6: Projected benefit obligation Fair value of plan assets Unrecognized
Fox, Inc. has the following information related to its defined benefit pension plan: December 31, 20x6: Projected benefit obligation Fair value of plan assets Unrecognized prior service cost December 31, 20x7: $1,500,000 1,200,000 200,000 Projected benefit obligation Fair value of plan assets Service cost $1,740,000 1,800,000 220,000 Assumptions: Discount rate 6% Expected return on plan assets 8% Fox makes an annual pension plan contribution of $200,000. The company's employees had an average remaining service life of 20 years on 12/31 x6 and the company expects to pay benefits totaling $170,000 to retired employees in 20x8. Fox has an effective tax rate of 30%. What would Fox report as net periodic pension cost on its December 31, 20x7, income statement? $218.000 $300.000 $200.000 138000 Fox, Inc. has the following information related to its defined benefit pension plan: December 31, 20x6: Projected benefit obligation Fair value of plan assets Unrecognized prior service cost December 31, 20X7: $1,500,000 1,200,000 200,000 Projected benefit obligation Fair value of plan assets Service cost $1,740,000 1,800,000 220,000 Assumptions: Discount rate 6% Expected return on plan assets 8% Fox makas an annual pension plan contribution of $200,000. The company's employees had an average remaining service life of 20 years on 12/31/26 and the company expects to pay benefits totaling $170,000 to retired employees in 20x8. Fox has an effective tax rate of 30%. What would Fox report as net periodic pension cost on it December 31, 2007, income statement
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