Patey Technologies calculated pension expense for its underfunded pension plan as follows:
Required:
What is the effect of the components of pension expense on Patey's statement of comprehensive income?
$\begin{array}{lc}
& \text { (\$ in millions) } \
\text { Service cost } & \$ 672 \
\text { Interest cost } & 450 \
\text { Expected retum on the plan assets (\$300 actual, less \$30 gain) } & (270) \
\text { Amortization of prior service cost } & 24 \
\text { Amortization of net loss } & 6\\text { Pension expense }&\$882
\end{array}$

Question

Patey Technologies calculated pension expense for its underfunded pension plan as follows:
Required:
What is the effect of the components of pension expense on Patey's statement of comprehensive income?
 $\begin{array}{lc}
& \text { (\$ in millions) } \
\text { Service cost } & \$ 672 \
\text { Interest cost } & 450 \
\text { Expected retum on the plan assets (\$300 actual, less \$30 gain) } & (270) \
\text { Amortization of prior service cost } & 24 \
\text { Amortization of net loss } & 6\\text { Pension expense }&\$882
\end{array}$

Quizplus · Accepted Answer

The Answer of Patey Technologies calculated pension expense for its underfunded pension plan as follows:
Required:
What is the effect of the components of pension expense on Patey's statement of comprehensive income?
 $\begin{array}{lc}
& \text { (\$ in millions) } \
\text { Service cost } & \$ 672 \
\text { Interest cost } & 450 \
\text { Expected retum on the plan assets (\$300 actual, less \$30 gain) } & (270) \
\text { Amortization of prior service cost } & 24 \
\text { Amortization of net loss } & 6\\text { Pension expense }&\$882
\end{array}$

Patey Technologies Calculated Pension Expense for Its Underfunded Pension Plan