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Test:CPA Financial Accounting and Reporting (FAR)
1. | A company starts a defined benefit pension plan on January 1, Year 1. The service cost for the year is $250,000 and plan funding each year is $175,000 (made each January 1). Interest on the projected benefit obligation is 8% while the expected return on plan assets is 10%. How much is pension expense in Year 2? |
$192,500
$210,750
$233,250
$250,000
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