Business, 26.03.2021 20:00 giselaarcides

On January 1, 2021, Gillock Climbing Academy instituted a defined benefit pension plan for its employees. The annual service cost for each year of 2021 and 2022 was $600,000. The interest rate used to determine the projected benefit obligation is 10%. Both the actual and the expected return on plan assets are 8% for both years. Gillock funded the plan in the amount of $400,000 each January 1, beginning on January 1, 2021. What amount of pension expense should Gillock report in its income statement for the year ended December 31, 2022? A) $593,440. B) $600,000 C) $628,000. D) $726,560.

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On January 1, 2021, Gillock Climbing Academy instituted a defined benefit pension plan for its emplo...

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