Scallion Company received the following reports from its defined benefit pension plan for the current calendar year:
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Question:
Scallion Company received the following reports from its defined benefit pension plan for the current calendar year:
PBO | plan assets | ||
Balance, January 1 | $400,000 | Balance, January 1 | $250,000 |
cost of service | 195,000 | actual return | 30,000 |
interest cost | 32,000 | annual contribution | 110,000 |
benefits paid | (80,000) | benefits paid | (80,000) |
Balance, December 31 | $547,000 | Balance, December 31 | $310,000 |
The long-term expected rate of return on plan assets is 10%.
Assuming no other relevant data, what is the pension expense for the year?
Related Book For
Intermediate Accounting Volume 2
ISBN: 9781119497042
12th Canadian Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
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