TKE Corporation established a defined benefit pension plan in 2012. TKE has provided the following information for the year ended December 31, 2014:
$\begin{array}{lr}
\text { Service cost } & \$ 90,000 \
\text { Interest cost } & \$ 120,000 \
\text { Actual return on plan assets } & \$ 70,000 \
\text { Expected return on plan assets } & \$ 80,000 \
\text { Amortization of prior service costs } & \$ 30,000
\end{array}$
-The pension expense for 2014 is

Question

Quizplus · Accepted Answer

Pension expense = Service cost + Interest cost + Amortization of prior service costs - Expected return on plan assets + Actual return on plan assets= 90,000 + 120,000 + 30,000 - 80,000 + 70,000= $160,000

TKE Corporation Established a Defined Benefit Pension Plan in 2012