Presented below is pension information for Green Company for the year 2015: Expe

Question

Presented below is pension information for Green Company for the year 2015:

Expected return on plan assets                                                        $24,000

Interest on vested benefits                                                                 15,000

Service cost                                                                                       50,000

Interest on projected benefit obligation                                              21,000

Amortization of prior service cost due to increase in benefits           18,000

The amount of pension expense to be reported for 2015 is

a. $113,000.

b. $89,000.

c. $60,000.

d. $65,000.

a. $113,000.

b. $89,000.

c. $60,000.

d. $65,000.

Explanation / Answer

Answer

d ) 65000

service cost = 50000

interest on projected benefit obligation = 21000

amortization of prior service cost due

to increase in benefits = 18000

expected return on plan assets = - 24000

65000

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