Smith, Inc -Smith's Pension Expense for 2014 Is
A)$30,000

Smith, Inc. has a pension plan with the following data available for 2014 and 2015:
$\begin{array}{lcc}&2014&2015\\\text { Service cost } & \$ 30,000 & \$ 34,000 \\\text { Interest cost } & \$ 18,000 & \$ 20,000 \\\text { Actual return on plan assets } & \$ 15,000 & \$ 21,600 \\\text { Beginning of year plan assets } & \$ 200,000 & \$ 240,000 \\\text { Settlement rate } & 8 \% & 8 \% \\\text { Expected return on plan assets } & 8 \% & 8 \%\end{array}$
-Smith's pension expense for 2014 is

A) $30,000.
B) $32,000.
C) $33,000.
D) $48,000.

Correct Answer:

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