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Pharoah, 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
Pharoah, 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 Accumulated benefit obligation $3520000 $1680000 Net (gains) and losses 1480000 145000 Projected benefit obligation 6670000 6850000 Pension assets (at fair value) 3520000 4049000 The service cost component of pension expense for 2021 is $515000 and the amortization of prior service cost due to an increase in benefits is $109000. The settlement rate is 12% and the expected rate of return is 6%, What is the amount of pension expense for 2021? $1068200 $1213200 $803400 $1269800
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