Lee Electronics, Inc. reported the following information related to its defined- benefit pension plan at December 31, 2021: Projected benefit obligation .... $320,000 Pension plan assets, at market value...... $400,000 The plan was subject to the following activity during 2022: a) Lee's actuary confirmed that the service cost for the plan during the year was $60,000. b) The applicable interest rate for pension matters was 5%. c) Early in 2019, an amendment to the plan resulted in prior service cost of $40,000. Each year, one-tenth of this cost is amortized to expense. d) The pension plan asset balance at December 31st, at market value, was $445,000. Lee contributed $30,000 to the fund in 2022, and plan participants received $20,000 in benefits during the year. There were no significant actuarial gains or losses for the plan during 2022. Based on the above information, determine Lee Electronics, Inc.'s pension expense for the year ended December 31, 2022. Prepare a formal schedule to support your answer.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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FINANCIAL ACCOUNTING II
Lee Electronics, Inc. reported the following information related to its defined-
benefit pension plan at December 31, 2021:
Projected benefit obligation .....
$320,000
$400,000
Pension plan assets, at market value ......
The plan was subject to the following activity during 2022:
a) Lee's actuary confirmed that the service cost for the plan during the
year was $60,000.
b) The applicable interest rate for pension matters was 5%.
c) Early in 2019, an amendment to the plan resulted in prior service cost
of $40,000. Each year, one-tenth of this cost is amortized to expense.
d) The pension plan asset balance at December 31st, at market value,
was $445,000. Lee contributed $30,000 to the fund in 2022, and plan
participants received $20,000 in benefits during the year.
There were no significant actuarial gains or losses for the plan during 2022.
Based on the above information, determine Lee Electronics, Inc.'s pension
expense for the year ended December 31, 2022. Prepare a formal schedule
to support your answer.
Transcribed Image Text:FINANCIAL ACCOUNTING II Lee Electronics, Inc. reported the following information related to its defined- benefit pension plan at December 31, 2021: Projected benefit obligation ..... $320,000 $400,000 Pension plan assets, at market value ...... The plan was subject to the following activity during 2022: a) Lee's actuary confirmed that the service cost for the plan during the year was $60,000. b) The applicable interest rate for pension matters was 5%. c) Early in 2019, an amendment to the plan resulted in prior service cost of $40,000. Each year, one-tenth of this cost is amortized to expense. d) The pension plan asset balance at December 31st, at market value, was $445,000. Lee contributed $30,000 to the fund in 2022, and plan participants received $20,000 in benefits during the year. There were no significant actuarial gains or losses for the plan during 2022. Based on the above information, determine Lee Electronics, Inc.'s pension expense for the year ended December 31, 2022. Prepare a formal schedule to support your answer.
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