Question
The following information is related to the defined benefit pension plan of Dreamworld Company for the year: Service cost $ 62,000 Contributions to pension plan
The following information is related to the defined benefit pension plan of Dreamworld Company for the year:
| Service cost | $ | 62,000 | ||
| Contributions to pension plan | 114,000 | |||
| Benefits paid to retirees | 153,000 | |||
| Plan assets (fair value), January 1 | 644,000 | |||
| Plan assets (fair value), December 31 | 759,000 | |||
| Actual return on plan assets | 154,000 | |||
| PBO, January 1 | 910,000 | |||
| PBO, December 31 | 910,000 | |||
| Discount rate | 10 | % | ||
| Long-term expected return on plan assets | 9 | % | ||
Assuming no other relevant data exist, what is the pension expense for the year?
Step by Step Solution
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To calculate the pension expense for the year we need to consider several factors The pension expens...
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Intermediate Accounting
Authors: Earl K. Stice, James D. Stice
19th edition
1133957919, 978-1285632988, 1285632982, 978-0357691229, 978-1133957911
