Fox Company received the following reports of its defined benefit pension plan f

Question

Fox Company received the following reports of its defined benefit pension plan for the current calendar year:

$360,000.

$428,000.

$384,800.

$375,000.

Fox Company received the following reports of its defined benefit pension plan for the current calendar year:

PBO Plan assets Balance, January 1 $640,000 Balance, January 1 $540,000 Service cost 360,000 Actual return 53,000 Interest cost 68,000 Annual contribution 224,000 Benefits paid (95,000) Benefits paid (95,000) Balance, December 31 $973,000 Balance, December 31 $722,000 The long-term expected rate of return on plan assets is 8%. Assuming no other data are relevant, what is the pension expense for the year?

$360,000.

$428,000.

$384,800.

$375,000.

Explanation / Answer

Pension expense for the year=$360,000+$68,000-$53,000=$375,000

we are paying interest on fund and the same time we are getting on interest on plan assets, so difference amount only we have to recodnize as expense for the yeatr

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