Question: Smith, Inc. has a pension plan with the following data available for 20X1 and 20X2: 20X120X2Service cost$30,000$34,000Interest cost$18,000$20,000Actual return on plan assets$15,000$21,600Beginning of year plan

Smith, Inc. has a pension plan with the following data available for 20X1 and 20X2:

20X120X2Service cost$30,000$34,000Interest cost$18,000$20,000Actual return on plan assets$15,000$21,600Beginning of year plan assets$200,000$240,000Discount rate8%8%Expected return on plan assets8%8%

Smith's pension expense for 20X1 is:

Multiple Choice

  • $32,000.
  • $30,000.
  • $33,000.
  • $48,000.

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