Question

Potter Corporation is a private enterprise and has elected to use the immediate recognition approach to account for its defined benefit pension plan. The following information (in hundreds of thousands of dollars) is available for Potter Corporation for 2011:
Actual return on plan assets .......... 9
Current service cost ............ 19
Benefits paid to retirees .......... 10
Interest cost ................ 11
Contributions from employer ........ 20
Opening balance, ABO, funding basis ..... 100
Opening balance, fund assets ........ 100
At the end of the year, Potter Corporation revised the terms of its pension plan, which resulted in past service costs of $35.
Determine the pension expense that should be reported on Potter Corporation’s December 31, 2011 income statement.


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  • CreatedAugust 23, 2015
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