Question
Sandhill, 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
Sandhill, 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 $ 1690000 Net (gains) and losses 1420000 152000 Projected benefit obligation 6660000 6900000 Pension assets (at fair value) 3520000 4078000
The service cost component of pension expense for 2021 is $521000 and the amortization of prior service cost due to an increase in benefits is $112000. The settlement rate is 11% and the expected rate of return is 7%. What is the amount of pension expense for 2021?
$1153100 $897900 $1119200 $967200
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