Crane, Inc. received the following information from its pension plan trustee concerning the operation of the...

 

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Crane, Inc. received the following information from its pension plan trustee concerning the operation of the company's defined-benefit pension plan for the year ended December 31, 2026: January 1, 2026 December 31, 2026 Fair value of pension plan assets $5550000 $5950000 Projected benefit obligation 6350000 6830000 Accumulated benefit obligation 1115000 1355000 Accumulated OCI - (Gains/Losses) 0 (125000) Actual return on plan assets 250000 The service cost component of pension expense for 2026 is $575000 and the amortization of prior service cost due to an increase in benefits is $79000. The settlement rate is 9%. Assuming that the actual return equals the expected return on plan assets, what is the amount of pension expense for 2026? $1225500 $990000 O $975500 O $654000 Crane, Inc. received the following information from its pension plan trustee concerning the operation of the company's defined-benefit pension plan for the year ended December 31, 2026: January 1, 2026 December 31, 2026 Fair value of pension plan assets $5550000 $5950000 Projected benefit obligation 6350000 6830000 Accumulated benefit obligation 1115000 1355000 Accumulated OCI - (Gains/Losses) 0 (125000) Actual return on plan assets 250000 The service cost component of pension expense for 2026 is $575000 and the amortization of prior service cost due to an increase in benefits is $79000. The settlement rate is 9%. Assuming that the actual return equals the expected return on plan assets, what is the amount of pension expense for 2026? $1225500 $990000 O $975500 O $654000

Answer rating: 100% (QA)

Answer To calculate the pension expense for 2026 we need to consider various components such as serv... View the full answer