Zink Cos defined benefit pension plan had plan assets with a

Zink Co.’s defined benefit pension plan had plan assets with a fair value of $325,000 at December 31, 2018, and of $375,000 at December 31, 2019. During 2019, 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?

Multiple Choice

A loss of $55,000

A return of $15,000

A return of $70,000

A return of $80,000

Solution

A return of $70,000.. . .... .... .... ... . . ....

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