The following information is related to the defined benefit pension plan of Dreamworld Company for the year:

Assuming no other relevant data exist,what is the pension expense for the year?

Question

The following information is related to the defined benefit pension plan of Dreamworld Company for the year:

Assuming no other relevant data exist,what is the pension expense for the year?

Quizplus · Accepted Answer

Based on the information provided, the only relevant data is the service cost of $60,000, interest cost of $120,000, and actual return on plan assets of ($30,000). Using the formula Pension Expense = Service Cost + Interest Cost - Actual Return on Plan Assets, we get Pension Expense = $60,000 + $120,000 - ($30,000) = $92,400. Therefore, the correct answer is B.

The Following Information Is Related to the Defined Benefit Pension