A company had the following information concerning the operation of the company's defined-benefit pension plan for the year ended December 31, 2021. January 1, 2021 December 31, 2021 Fair value of pension plan assets $38,000 $55,000 Projected benefit obligation 74,000 93,000 The service cost component of pension expense for 2021 is $8,700 and the amortization of prior service cost is $890. The settlement rate is 12% and the expected rate of return is 8%. What is the amount of pension expense for 2021?
A company had the following information concerning the operation of the company's defined-benefit pension plan for the year ended December 31, 2021. January 1, 2021 December 31, 2021 Fair value of pension plan assets $38,000 $55,000 Projected benefit obligation 74,000 93,000 The service cost component of pension expense for 2021 is $8,700 and the amortization of prior service cost is $890. The settlement rate is 12% and the expected rate of return is 8%. What is the amount of pension expense for 2021?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company had the following information concerning the operation of the company's defined-benefit pension plan for the year ended December 31, 2021.
January 1, 2021 December 31, 2021
Fair value of pension plan assets $38,000 $55,000
Projected benefit obligation 74,000 93,000
The service cost component of pension expense for 2021 is $8,700 and the amortization of prior service cost is $890. The settlement rate is 12% and the expected
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