The following information is provided regarding a company's pension plan:

Service cost $ 640,000 Projected benefit obligation, Jan. 1 4,500,000 Fair value plan assets, Jan. 1 3,750,000 Amortization of unrecognized prior service cost for the year 250,000 Interest cost 8% Employer contribution to fund 845,000 Expected (and actual) return on plan assets 10%

What is pension expense?

Answer: Pension expense is 875,000

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