The Carrasco Company has provided you the following information pertaining to its defined benefit pension plan that was adopted on January 1, 2018: The service cost was $750,000 during 2018 and $1,125,000 during 2019.
The contribution to the pension plan was $600,000 on December 31, 2018 and $1,200,000 on December 31, 2019.
The actuarially determined discount rate and the expected return on plan assets are both 10%.
The actual return on plan assets was 10.5%.
Retirement benefits pertaining to years of service prior to 2018 were not granted to the employees.
What is the balance of the pension plan assets as of December 31, 2019?
A. $1,800,000
B. $1,863,000
C. $1,860,000
D. $1,953,750
Answer: B
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