What is the pension expense for the following plan? "The company must contribute $100/year for each of its 500 employees.The plan hopes to accumulate enough funds so that retirees receive $10,000 in the future; the plan does not guarantee the investment returns to the employees."

Question

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The pension expense for this plan is the amount the company must contribute each year to meet the future retirement obligations. In this case, the company must contribute $100/year for each of its 500 employees, which results in a total contribution of $50,000/year. The $10,000 future retirement payout for each retiree is not an expense incurred by the company in the current year and is instead a future financial obligation of the pension plan. Therefore, the correct answer is C, $50,000.

What Is the Pension Expense for the Following Plan? "The