Question

Bridgeport Company provides the following information about its defined benefit pension plan for the year 2020.

Service cost		$ 90,300
Contribution to the plan		106,800
Prior service cost amortization		9,600
Actual and expected return on plan assets		63,800
Benefits paid		39,700
Plan assets at January 1, 2020		629,900
Projected benefit obligation at January 1, 2020		706,100
Accumulated OCI (PSC) at January 1, 2020		150,800
Interest/discount (settlement) rate		10	%

Compute the pension expense for the year 2020.

Pension expense for 2020

$_____________________

Answer 1

Calculation of Pension Expense for 2020
	$
Service Cost	90,300.00
Interest cost (706,100*10%)	70,610.00
Expected return on the plan assets	(63,800.00)
Prior service cost amortization	9,600.00
Pension Expense	106,710.00