Question

Pension data for Quinones Company included the following for the current calendar year: Actual return on plan assets $ 85,000 Amortization of net loss 2,500 Amortization of prior service cost 6,500 Expected return on plan assets 68,000 Interest cost 48,000 PBO, January 1 800,000 Plan assets, January 1 850,000 Service cost 110,000 What is pension expense for the year

Answer 1

Answer:

pension expense                          99,000

Explanation:

The pension expense is determinate with the expected return on assets not their actual return.

Service cost                                 110,000

Interest cost                                 48,000

expected return                          (68,000)

Amortization of prior service cost 6,500

Amortization of net loss                 2,500  

pension expense                          99,000