C is corrent. Pension cost is a net amount calculated by adding or subtracting the factors as follows:| Service cost | $150,000 | | Return on plan assets | (40,000) | | Interest cost on pension benefit obligation | 82,000 | | Amortization of actuarial loss | 15,000 | | Amortization of unrecognized net obligation | 35,000 | | Pension cost | $242,000 |
Service cost and interest on the projected benefit obligation always increase pension expense; return on plan assets almost always decreases pension expense. Amortization of actuarial loss and amortization of a net obligation both increase pension expense.A is incorrect. Pension cost is a net amount calculated by adding or subtracting the factors as follows:| Service cost | $150,000 | | Return on plan assets | (40,000) | | Interest cost on pension benefit obligation | 82,000 | | Amortization of actuarial loss | 15,000 | | Amortization of unrecognized net obligation | 35,000 | | Pension cost | $242,000 |
Service cost and interest on the projected benefit obligation always increase pension expense; return on plan assets almost always decreases pension expense. Amortization of actuarial loss and amortization of a net obligation both increase pension expense.B is incorrect. Pension cost is a net amount calculated by adding or subtracting the factors as follows:| Service cost | $150,000 | | Return on plan assets | (40,000) | | Interest cost on pension benefit obligation | 82,000 | | Amortization of actuarial loss | 15,000 | | Amortization of unrecognized net obligation | 35,000 | | Pension cost | $242,000 |
Service cost and interest on the projected benefit obligation always increase pension expense; return on plan assets almost always decreases pension expense. Amortization of actuarial loss and amortization of a net obligation both increase pension expense.D is incorrect. Pension cost is a net amount calculated by adding or subtracting the factors as follows:| Service cost | $150,000 | | Return on plan assets | (40,000) | | Interest cost on pension benefit obligation | 82,000 | | Amortization of actuarial loss | 15,000 | | Amortization of unrecognized net obligation | 35,000 | | Pension cost | $242,000 |
Service cost and interest on the projected benefit obligation always increase pension expense; return on plan assets almost always decreases pension expense. Amortization of actuarial loss and amortization of a net obligation both increase pension expense. |
