Cahal-Mitchell Company received the following reports for its defined benefit pension plan for 2022: PBO Plan assets Balance, January 1 $ 470,000 Balance, January 1 $ 259,000 Service cost 194,000 Actual return 38,000 Interest cost 36,000 Annual contribution 117,000 Benefits paid (80,000 ) Benefits paid (80,000 ) Balance, December 31 $ 620,000 Balance, December 31 $ 334,000 The long-term expected rate of return on plan assets is 10%. Assuming no other data is relevant, what is the pension expense for 2022?
Cahal-Mitchell Company received the following reports for its defined benefit pension plan for 2022: PBO Plan assets Balance, January 1 $ 470,000 Balance, January 1 $ 259,000 Service cost 194,000 Actual return 38,000 Interest cost 36,000 Annual contribution 117,000 Benefits paid (80,000 ) Benefits paid (80,000 ) Balance, December 31 $ 620,000 Balance, December 31 $ 334,000 The long-term expected rate of return on plan assets is 10%. Assuming no other data is relevant, what is the pension expense for 2022?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cahal-Mitchell Company received the following reports for its defined benefit pension plan for 2022:
| PBO | Plan assets | ||||||||
| Balance, January 1 | $ | 470,000 | Balance, January 1 | $ | 259,000 | ||||
| Service cost | 194,000 | Actual return | 38,000 | ||||||
| Interest cost | 36,000 | Annual contribution | 117,000 | ||||||
| Benefits paid | (80,000 | ) | Benefits paid | (80,000 | ) | ||||
| Balance, December 31 | $ | 620,000 | Balance, December 31 | $ | 334,000 | ||||
The long-term expected
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