Dale City Light & Water (a proprietary fund) contributes to a defined benefit pension plan for its employees. During 2017, the city contributed $36 million to the pension plan. The city also made a $4 million contribution related to 2016. The actuarially determined contribution requirement for 2017 was $43 million. The amount of pension expense recognized by Dale City Light & Water for 2017 should be:

Question

Quizplus · Accepted Answer

The pension expense recognized should be the actuarially determined contribution requirement for the year, which is $43 million. Contributions made for previous years do not affect the current year's pension expense.

Dale City Light & Water (A Proprietary Fund) Contributes to a Defined