Questions 13 through 16 are based on the following information:

On January 1, 2019, McGee Co. had the following balances: Projected benefit obligation Fair value of plan assets

Other data related to the pension plan for 2019:

contributions to the plan

Benefits paid On 1/1/20019, prior service cost was granted having

a present value of Actual return on plan assets Settlement rate Expected rate of return Amortized Prior Service cost Amortization of net gain Service cost

13. Total pension expense for 2019 is A. $396,000

B. $409,500 C. $430,000 D. $589,500

$6,400,000 6,000,000

400,000 350,000

150,000 430,000 9% 7%

40,000 50,000 250,000

14. In the journal to record pension expense, the Pension Asset/Liability account is credited for A. $159, 500

    B. $400,000 C. $150,000 D. None of the above.

15. How much will be reported on the balance sheet as Pension Asset/Liability at year end ? A. $6,480,000 B. $400,000 C. $159,500

    D. $559,500

16. At December 31 2019, the balance of the Projected Benefit Obligation is

    A. $7,039,500 B. $6,489,000 C. $6,889,500 D. $6,809,500