Question

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%

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