On January $1,2024,$ Kattelman Climbing Academy instituted a defined benefit pension plan for its employees. The annual service cost for each year of $2024$ and $2025$ was $$680,000.$ The interest rate used to determine the projected benefit obligation is $12\%.$ Both the actual and the expected return on plan assets are $10\%$ for both years. Kattelman funded the plan in the amount of $$480,000$ each January $1,$ beginning on January $1,2024.$

What amount of pension expense should Kattelman report in its income statement for the year ended December $31,2025?$

Answer rating: 100% (QA)

To calculate the pension expense for the year ended December 31 2025 we need to consider several com... View the full answer