Help Save& Exit Scallion Company received the following reports of its defined b

Question

Help Save& Exit Scallion Company received the following reports of its defined benefit pension plan for the current calendar year: 3 PBO Balance, January1 Service cost Interest cost Benefits paid Balance, December 31 Plan assets $430,000 Balance, January 1 $256,000 34,000 114,000 (81,000) $323,000 197,000 Actual return 37,000 Annual contribution (81,000) Benefits paid $583,000 Balance, December 31 The long-term expected rate of return on plan assets is 10%. Assuming no other data are relevant, what is the pension expense fo the year? $200,000. $208,400 K Prev 3 of 12 Next >

Explanation / Answer

service cost 197000

interest cost 37000

expected return on plan assets (25600)

(256000 * 10%)

pension expense 208400

so answer is $208400

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