Presented below is pension information for Green Company for the year 2015: Expe
ID: 2408061 • Letter: P
Question
Presented below is pension information for Green Company for the year 2015:
Expected return on plan assets $24,000
Interest on vested benefits 15,000
Service cost 50,000
Interest on projected benefit obligation 21,000
Amortization of prior service cost due to increase in benefits 18,000
The amount of pension expense to be reported for 2015 is
a. $113,000.
b. $89,000.
c. $60,000.
d. $65,000.
a. $113,000.
b. $89,000.
c. $60,000.
d. $65,000.
Explanation / Answer
Answer
d ) 65000
service cost = 50000
interest on projected benefit obligation = 21000
amortization of prior service cost due
to increase in benefits = 18000
expected return on plan assets = - 24000
65000