Final answer:
To calculate the pension expense for Cooper Enterprises in 2013, you need to consider the changes in the projected benefit obligation (PBO) and the fair value of plan assets. The formula for pension expense includes the beginning PBO, current service cost, interest cost, actual return on plan assets, and amortization of past service cost. Calculate the current service cost and interest cost separately using the given information.
Step-by-step explanation:
To calculate the pension expense for Cooper Enterprises in 2013, we need to consider the changes in the projected benefit obligation (PBO) and the fair value of plan assets. The pension expense can be calculated using the following formula:
Pension Expense = Beginning PBO + Current Service Cost + Interest Cost - Actual Return on Plan Assets + Amortization of Past Service Cost
Given the information provided, the beginning PBO is $400,000. The current service cost can be calculated using the average remaining service life of employees, which is 10 years. The interest cost is based on the beginning PBO and the discount rate. The actual return on plan assets can be calculated by subtracting the beginning fair value of plan assets from the ending fair value of plan assets, which is $200,000 in this case.
Finally, there are no amortization of past service cost and actuarial gains/losses mentioned, so we can exclude those from the calculation. Therefore, the pension expense for Cooper Enterprises in 2013 is:
Pension Expense = $400,000 + Current Service Cost + Interest Cost - $200,000
Make sure to calculate the current service cost and interest cost separately using the given information.