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Oriole, Inc. received the following information from its pension plan trustee concerning the operation of the...

Oriole, 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, 2018.

January 1, 2018 December 31, 2018
Fair value of pension plan assets $5150000 $5550000
Projected benefit obligation 5950000 6430000
Accumulated benefit obligation 1075000 1315000
Accumulated OCI – (Gains / Losses) 0 -165000


The service cost component of pension expense for 2018 is $375000 and the amortization of prior service cost due to an increase in benefits is $71000. The settlement rate is 11% and the expected rate of return is 10%. What is the amount of pension expense for 2018?

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Particulars

 Amount ($)
Service Cost $       375,000
Add: Amortization of prior service $         71,000
Add: Interest on projected benefit obligation $       654,500 5950000*11%
Less: Expected return on Plan assets -$       515,000 5150000*10%
Pension Expense for 2021 $       585,500
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