Question - Bunny Hopping, Inc. sponsors a defined-benefit pension plan. The following data relate to the operation of the plan for the year 2013.
Service cost $160,000
Contributions to the plan $130,000
Actual return on plan assets $135,000
Projected benefit obligation (beginning of year) $1,700,000
Fair value of plan assets (beginning of year) $1,800,000
The expected return on plan assets and the settlement rate were both 8%. The amount of pension expense reported for 2013 is:
$296,000.00.
$161,000.00.
$160,000.00.
$152,000.00.