Question

Presented below is information related to Blossom Inc. pension plan for 2021.Service cost $ 1260000Actual return on plan assets 264000Interest on projected benefit obligation 500000Amortization of net loss 110000Amortization of prior service cost due to increase in benefits 210000Expected return on plan assets 230000What amount should be reported for pension expense in 2021?

Answer 1

$1,850,000

Step-by-step explanation:

Blossom Inc. pension plan for 2021.

Service cost $ 1,260,000

Interest on projected benefit obligation $500,000

Amortization of net loss $110,000

Amortization of prior service cost due to increase in benefits $210,000

Less Expected return on plan assets ($230,000)

Pension expense $1,850,000

Therefore the amount that should be reported for pension expense in 2021 is $1,850,000