Question

Company provides the following information about its defined benefit pension plan for the year 2020. What...

Company provides the following information about its defined benefit pension plan for the year 2020. What is Brownie’s pension expense for 2020?

Service cost

$107,000

Contribution to the plan

102,000

Prior service cost amortization

10,000

Actual and expected return on plan assets

33,000

Benefits paid

36,000

Plan assets at January 1, 2017

583,000

Projected benefit obligation at January 1, 2017

664,000

Accumulated OCI (PSC) at January 1, 2017

148,000

Interest/discount (settlement) rate

5%

Homework Answers

Answer #1
Answer

Calculation of Pension Expense for 2020

$  
Service Cost $      107,000
Interest cost (66,4000*5%) $        33,200
Expected return on the plan assets -$       33,000
Prior service cost amortization $        10,000
Pension Expense $      117,200
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