Ivanhoe, 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. January 1, 2021 December 31, 2021 Fair value of pension plan assets $5100000 $5500000 Projected benefit obligation 5900000 6380000 Accumulated benefit obligation 1070000 1310000 Accumulated OCI – (Gains / Losses) 0 -170000 The service cost component of pension expense for 2021 is $350000 and the amortization of prior service cost due to an increase in benefits is $70000. The settlement rate is 9% and the expected rate of return is 8%. What is the amount of pension expense for 2021? $350000 $554200 $543000 $373000
Ivanhoe, 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. January 1, 2021 December 31, 2021 Fair value of pension plan assets $5100000 $5500000 Projected benefit obligation 5900000 6380000 Accumulated benefit obligation 1070000 1310000 Accumulated OCI – (Gains / Losses) 0 -170000 The service cost component of pension expense for 2021 is $350000 and the amortization of prior service cost due to an increase in benefits is $70000. The settlement rate is 9% and the expected rate of return is 8%. What is the amount of pension expense for 2021? $350000 $554200 $543000 $373000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ivanhoe, 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.
| January 1, 2021 | December 31, 2021 | |||||||
| Fair value of pension plan assets | $5100000 | $5500000 | ||||||
| Projected benefit obligation | 5900000 | 6380000 | ||||||
| Accumulated benefit obligation | 1070000 | 1310000 | ||||||
| Accumulated OCI – (Gains / Losses) | 0 | -170000 |
The service cost component of pension expense for 2021 is $350000 and the amortization of prior service cost due to an increase in benefits is $70000. The settlement rate is 9% and the expected
|
|
$350000 |
|
|
$554200 |
|
|
$543000 |
|
|
$373000 |
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