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sergij07 [2.7K]
3 years ago
15

Kraft, Inc. sponsors a defined-benefit pension plan. The following data relates to the operation of the plan for the year 2018:

Business
1 answer:
brilliants [131]3 years ago
6 0

Answer:

c) $465,000

Explanation:

The amount of pension expense reported for 2018 can be calculated using only the relevant data in the question as follows:

Pension expenses = Service cost + (Beginning of year Projected benefit obligation × 10%) - (Beginning of year fair value of plan assets × 10%)

Therefore, we have:

Pension expenses = $ 345,000 + ($3,600,000 × 10%) - ($2,400,000 × 10%) =  $465,000

Therefore, the amount of pension expense reported for 2018 is $465,000.

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Based on the information given we were told that the company had zero balances in both Accumulated Depreciation -Equipment as well as the Depreciation Expense in which the Depreciation amount for the year is estimated to be $3,620 which means that the adjusting entry for depreciation at December 31 will be recorded as:

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