The following information is related to the defined benefit pension plan of Stanley-Morgan Industries for the year 2021: Service cost $ 62,000 Contributions to pension plan 114,000 Benefits paid to retirees 151,000 Plan assets (fair value), January 1 649,000 Plan assets (fair value), December 31 766,000 Actual return on plan assets 154,000 PBO, January 1 945,000 PBO, December 31 950,500 Discount rate 10 % Long-term expected return on plan assets 9 %
The following information is related to the defined benefit pension plan of Stanley-Morgan Industries for the year 2021: Service cost $ 62,000 Contributions to pension plan 114,000 Benefits paid to retirees 151,000 Plan assets (fair value), January 1 649,000 Plan assets (fair value), December 31 766,000 Actual return on plan assets 154,000 PBO, January 1 945,000 PBO, December 31 950,500 Discount rate 10 % Long-term expected return on plan assets 9 %
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 6E
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Question
The following information is related to the defined benefit pension plan of Stanley-Morgan Industries for the year 2021:
Service cost | $ | 62,000 | ||
Contributions to pension plan | 114,000 | |||
Benefits paid to retirees | 151,000 | |||
Plan assets (fair value), January 1 | 649,000 | |||
Plan assets (fair value), December 31 | 766,000 | |||
Actual return on plan assets | 154,000 | |||
PBO, January 1 | 945,000 | |||
PBO, December 31 | 950,500 | |||
Discount rate | 10 | % | ||
Long-term expected return on plan assets | 9 | % | ||
Assuming no other relevant data exist, what is Stanley-Morgan's pension expense for 2021?
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