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A company offers a defined benefit pension plan. At the end of 2022 the plan assets were $2,000,000 and the pension benefit obligation was $1,900,000.
A company offers a defined benefit pension plan. At the end of 2022 the plan assets were $2,000,000 and the pension benefit obligation was $1,900,000. During 2023, the service cost was $300,000, the actual return on plan assets was 6% (the expected return was 8%), the interest rate is 5%, the company contributed $200,000 to the pension fund, and retirees were paid $250,000.
- What is the pension benefit obligation at the end of 2023?
- What are the plan assets at the end of 2023?
- What was the pension expense for the year 2023?
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