Question: Smith, Inc. has a pension plan with the following data available for 20X1 and 20X2: 20X1 20X2 Service cost $ 30,000 $ 34,000 Interest cost
Smith, Inc. has a pension plan with the following data available for 20X1 and 20X2:
| 20X1 | 20X2 | |||||
| Service cost | $ | 30,000 | $ | 34,000 | ||
| Interest cost | $ | 18,000 | $ | 20,000 | ||
| Actual return on plan assets | $ | 15,000 | $ | 21,600 | ||
| Beginning of year plan assets | $ | 200,000 | $ | 240,000 | ||
| Discount rate | 8 | % | 8 | % | ||
| Expected return on plan assets | 8 | % | 8 | % | ||
Smiths pension expense for 20X2 is:
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