Noser Inc.shows the following data relating to its pension plan for 2014:

What amount should Noser report for pension expense in 2014?

Question

Noser Inc.shows the following data relating to its pension plan for 2014:

What amount should Noser report for pension expense in 2014?

Quizplus · Accepted Answer

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 The pension expense for Noser Inc. in 2014 is calculated by taking the beginning PBO balance ($1,350,000) plus the service cost ($180,000) plus the interest cost ($81,000) minus the expected return on assets ($102,000), and adding in the settlement loss ($90,000). This gives a total pension expense of $242,000, which is option C.

Noser Incshows the Following Data Relating to Its Pension Plan for for 2014