Talley pension expense to be recorded

Question

Talley, Inc. Pension Plan        Year 7    Year 8
Service cost                          15,000     17,000
Interest cost                          9,000      10,000
Actual return on plan assets    7,500       10,800
Beginning of year plan assets 100,000    120,000
Settlement rate                         8%           8%

Q1. What is Talley's pension expense to be recorded for Year 7? (Hint: The expected return on plan assets equals beginning of year plan assets times the settlement rate.)

• $15,000
• $16,000
• $16,500
• $24,000

Q2. What is Talley's pension expense to be recorded for Year 8? (Hint: The expected return on plan assets equals beginning of year plan assets times the settlement rate.)

• $16,200
• $17,000
• $17,400
• $27,000

Q3. What is Talley's deferred gain or loss from the return on plan assets for Year 7?

• $0
• $500 deferred gain
• $500 deferred lossUnknown from information provided

Q4. What is Talley's deferred gain or loss from the return on plan assets for Year 8?

• $0
• $1,200 deferred gain
• $1,200 deferred loss
• Unknown from information provided