Palm Company's actuary has computed its prior service cost to be $5,000,000. The company amortizes the prior

Question:

Palm Company's actuary has computed its prior service cost to be $5,000,000. The company amortizes the prior service cost by the straight-line method over the remaining 25-year service life of its active employees. During the current year, the company also recognizes $330,000 of service cost and $22,000 of interest cost. Compute Palm Company's pension expense for the current year.