The following information is related to the defined benefit pension plan of Drea

Question

The following information is related to the defined benefit pension plan of Dreamworld Company for the year:

$102,680.

$99,680.

$67,000.

$161,000.

  Service cost $67,000      Contributions to pension plan 114,000      Benefits paid to retirees 157,000      Plan assets (fair value), January 1 648,000      Plan assets (fair value), December 31 764,000      Actual return on plan assets 159,000      PBO, January 1 940,000      PBO, December 31 944,000      Discount rate 10%   Long-term expected return on plan assets 9%

Explanation / Answer

pension expense $102,680

pension expense $102,680

Service cost $67,000 Interest cost (940,000@10%) 94,000 Expected return on plan assets (648,000@9%) (58,320) pension expense 102,680

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