A company's defined benefit pension plan incurs current service cost of $8,000,000.Expected income on the pension plan's assets amounted to $7,800,000,while actual income was $9,900,000.The interest on the pension obligation was $9,000,000,which matched the actuarial estimates.The pension plan has no past service costs,and unamortized actuarial gains or losses at the beginning of the year are within the corridor limit.
Requirement:
Compute the amount of pension expense for the year.

Question

Quizplus · Accepted Answer

The Answer of A company's defined benefit pension plan incurs current service cost of $8,000,000.Expected income on the pension plan's assets amounted to $7,800,000,while actual income was $9,900,000.The interest on the pension obligation was $9,000,000,which matched the actuarial estimates.The pension plan has no past service costs,and unamortized actuarial gains or losses at the beginning of the year are within the corridor limit.
Requirement:
Compute the amount of pension expense for the year.

A Company's Defined Benefit Pension Plan Incurs Current Service Cost