Zink Co.’s defined benefit pension plan had plan assets with a fair value of $325,000 at December 31, year 8, and of $375,000 at December 31, year 9. During year 9, Zink Co. recognized pension expense of $120,000 and contributed a total of $130,000 to the plan. Certain plan investments, which had a cost and carrying value of $125,000, were sold for $70,000 and payments to retirees for pension benefits amounted to $150,000. What was the actual return on plan assets?

C. A return of $70000

Explanation:

Given that

Beginning plan asset = 325000

End plan asset = 375000

Contributions = 130000

Total avalable assets initially = beginning plan asset + contributions

= 325000 + 130000

= 455,000.

Distributions of pension resulted in less 150000

Thus,

Balance = 455000 - 150000

= 305000.

But recall that the ending balance was

375000

Thus,

The difference between 375000 and 305000 = $70000, represents the return on plan assets.

Hence return on plan assets

= $70,000

NOTE that, the loss of $55,000 from sale of specific investments is included in the net gain of $70,000

explore some of these tourist attractions

the metropolitan museum of art. source: anton_ivanov / shutterstock.

central park. source: gagliardiphotography / shutterstock.

national 9/11 memorial and museum.

empire state building.

statue of liberty.

the museum of modern art (moma)

rockefeller center.

brooklyn bridge.

explanation:

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%