Presented below is information related to Jensen Inc. pension plan for 2015. $\begin{array}{lr}
\text { Service cost } & \$ 1,020,000 \
\text { Actual return on plan assets } & 210,000 \
\text { Interest on projected benefit obligation } & 390,000 \
\text { Amortization of net loss } & 90,000 \
\text { Amortization of prior service cost due to increase in benefits } & 165,000 \
\text { Expected return on plan assets } & 180,000
\end{array}$ What amount should be reported for pension expense in 2015?

Question

Quizplus · Accepted Answer

Pension expense is calculated as the sum of service cost, interest on projected benefit obligation, amortization of net loss, and amortization of prior service cost, minus the expected return on plan assets. Thus, $1,020,000 + $390,000 + $90,000 + $165,000 - $180,000 = $1,485,000.

Presented Below Is Information Related to Jensen Inc What Amount Should Be Reported for Pension Expense in 2015