The following information is related to the defined benefit pension plan of Simpson 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 Simpson Company for the year:  Assuming no other relevant data exist, what is the pension expense for the year?

Quizplus · Accepted Answer

The pension expense for the year is calculated as follows:
Service cost + Interest cost - Expected return on plan assets + Amortization of prior service cost - Amortization of unrecognized net (gain) or loss = Pension expense
($310,000 + $182,000 - $190,000 + $0 - $180,600) = $121,400. Therefore, the correct answer is C.

The Following Information Is Related to the Defined Benefit Pension