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Carla Vista, 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
Carla Vista, 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, 2021.
1/1/21 | 12/31/21 | |||||||
Projected benefit obligation | $ | 14000000 | $ | 14420000 | ||||
Pension assets (at fair value) | 7700000 | 8750000 | ||||||
Accumulated benefit obligation | 3150000 | 3570000 | ||||||
Net (gains) and losses | 0 | 350000 |
The service cost component of pension expense for 2021 is $1110000 and the amortization of prior service cost due to an increase in benefits is $280000. The settlement rate is 11% and the expected rate of return is 9%. What is the amount of pension expense for 2021?
$2283200
$2142500
$1890500
$2237000
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