73. Windsor, 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. Accumulated benefit obligation Net (gains) and losses Projected benefit obligation Pension assets (at fair value) 1/1/26 $3,500,000 12/31/26 $1,610,000 1,400,000 140,000 6,650,000 3,500,000 6,860,000 4,025,000 The service cost component of pension expense for 2026 is $520,000 and the amortization of prior service cost due to an increase in benefits is $105,000. The settlement rate is 10%. Actual return on plan assets for 2026 is $280,000. Assume the actual return on plan assets is equal to the expected return on plan assets. What is the amount of pension expense for 2026? a. $1,031,000 19-14 Test Bank for Intermediate Accounting, Eighteenth Edition b. $1,010,000 c. $968,000 d. $870,000 Ans: B, LO: 1, Bloom: AP, Difficulty: Moderate, Min: 3, AACSB: Analytic, AICPA BC: None, AICPA AC: Reporting, AICPA PC: Problem Solving, IMA: Reporting, IFRS: None