Crane, Inc. received the following information from its pension plan trustee concerning the operation of the company's defined-benefit pension plan for the year ended December 31, 2021. Fair value of pension plan assets Projected benefit obligation Accumulated benefit obligation Accumulated OCI - (Gains / Losses) January 1, 2021 $5550000 O $656500 O $575000 O $792700 O $781500 6350000 1115000 0 December 31, 2021 $5950000 6830000 1355000 -125000 The service cost component of pension expense for 2021 is $575000 and the amortization of prior service cos due to an increase in benefits is $79000. The settlement rate is 9% and the expected rate of return is 8%. What is the amount of pension expense for 2021?
Crane, Inc. received the following information from its pension plan trustee concerning the operation of the company's defined-benefit pension plan for the year ended December 31, 2021. Fair value of pension plan assets Projected benefit obligation Accumulated benefit obligation Accumulated OCI - (Gains / Losses) January 1, 2021 $5550000 O $656500 O $575000 O $792700 O $781500 6350000 1115000 0 December 31, 2021 $5950000 6830000 1355000 -125000 The service cost component of pension expense for 2021 is $575000 and the amortization of prior service cos due to an increase in benefits is $79000. The settlement rate is 9% 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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![Crane, Inc. received the following information from its pension plan trustee concerning the operation of the
company's defined-benefit pension plan for the year ended December 31, 2021.
Fair value of pension plan assets
Projected benefit obligation
Accumulated benefit obligation
Accumulated OCI - (Gains / Losses)
January 1, 2021
$5550000
$656500
$575000
$792700
$781500
6350000
1115000
0
December 31, 2021
$5950000
6830000
1355000
-125000
The service cost component of pension expense for 2021 is $575000 and the amortization of prior service cost
due to an increase in benefits is $79000. The settlement rate is 9% and the expected rate of return is 8%. What
is the amount of pension expense for 2021?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3aff2365-9f44-4770-b8e3-e2ed0988bbf7%2F993d9af5-3298-454b-9ef4-e475359b8f74%2Fhvv45c9_processed.png&w=3840&q=75)
Transcribed Image Text:Crane, Inc. received the following information from its pension plan trustee concerning the operation of the
company's defined-benefit pension plan for the year ended December 31, 2021.
Fair value of pension plan assets
Projected benefit obligation
Accumulated benefit obligation
Accumulated OCI - (Gains / Losses)
January 1, 2021
$5550000
$656500
$575000
$792700
$781500
6350000
1115000
0
December 31, 2021
$5950000
6830000
1355000
-125000
The service cost component of pension expense for 2021 is $575000 and the amortization of prior service cost
due to an increase in benefits is $79000. The settlement rate is 9% and the expected rate of return is 8%. What
is the amount of pension expense for 2021?
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