On January 1, 2020, Shaina company had a projected benefit obligation of 2,500,000 and a pension fund with a fair value of 2,300,000. The entity provided the following information related to the pension plan during the current year: Current service cost 300,000 Actual return on the pension fund 62,500 Benefits paid to retirees
On January 1, 2020, Shaina company had a projected benefit obligation of 2,500,000 and a pension fund with a fair value of 2,300,000. The entity provided the following information related to the pension plan during the current year: Current service cost 300,000 Actual return on the pension fund 62,500 Benefits paid to retirees
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 7E
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#13
On January 1, 2020, Shaina company had a projected benefit obligation of 2,500,000 and a
pension fund with a fair value of 2,300,000. The entity provided the following information
related to the pension plan during the current year:
Current service cost 300,000
Actual return on the pension fund 62,500
Benefits paid to retirees 275,000
Contribution to the pension fund 262,500
Discount
Expected return
What is the pension expense for the current year?
The answer is 318,000 pls provide the correct solution for this
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