Question
The city of Whitehall provides a defined benefit pension plan for employees of the city water department, an enterprise fund. Assume that the service cost
The city of Whitehall provides a defined benefit pension plan for employees of the city water department, an enterprise fund. Assume that the service cost component is $420,000, and interest on the pension liability is $380,000 for the year. Actual returns on plan assets for the year were $300,000 while the projected level of earnings on plan investments was $360,000. This difference is to be amortized over a 5 year period, beginning this year. Finally assume the City is amortizing a deferred inflow resulting from a change in plan assumptions from a prior year in the amount of $10,000 per year. What is the total pension expense for the current year?
$442,000
$362,000
$436,000
$402,000
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