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c. 1. Presented below is pension information related to Woods, Inc. for the year 2020: Service cost $410,000 Interest on projected benefit obligation 270,000 Interest
c. 1. Presented below is pension information related to Woods, Inc. for the year 2020: Service cost $410,000 Interest on projected benefit obligation 270,000 Interest on vested benefits 120,000 Amortization of prior service cost due to increase in benefits 60,000 Expected return on plan assets 90,000 The amount of pension expense to be reported for 2020 is a. $590,000. b. $770,000. $860,000. d. $650,000. 2. Barton, 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, 2020. January 1, 2020 December 31, 2020 Fair value of pension plan assets $5,600,000 $6,000,000 Projected benefit obligation 6,400,000 6,880,000 Accumulated benefit obligation 1,120,000 1,360,000 Accumulated OCI (Gains / Losses) -0- (120,000) The service cost component of pension expense for 2020 is $600,000 and the amortization of prior service cost due to an increase in benefits is $80,000. The settlement rate is 10% and the expected rate of return is 9%. What is the amount of pension expense for 2020? a. $600,000 b. $816,000 $828,000 d. $696,000 c
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