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Scallion Company received the following reports of its defined benefit pension plan for the current calendar year: Plan assets PBO Balance, January 1 Service cost
Scallion Company received the following reports of its defined benefit pension plan for the current calendar year: Plan assets PBO Balance, January 1 Service cost Interest cost Benefits paid Balance, December 31 $430,000 Balance, January 1 $259,9060 35,000 110,900 (87,090) 317,000 195,000 Actual return 39,000 Annual contribution (87,000) Benefits paid $577,000 Balance, December 31 The long-term expected rate of return on plan assets is 10% Assuming no other data are relevant, what is the pension expense for the year? Multiple Choice $199,000 $234,000 $270,000
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