The pension plan was amended last year, creating a prior service cost of $90 million. Service cost and interest cost for the year were $28 million and $13 million, respectively. At the end of the year, there was a negligible balance in the net gain-pensions account. The actual return on plan assets was $13 million although it was expected to be $14 million. On average, employees' remaining service life with the company is 15 years. What was the total pension cost for the year?

The pension plan was amended last year, creating a prior service cost of $90 million. Service cost and interest cost for the year were $28 million and $13 million, respectively. At the end of the year, there was a negligible balance in the net gain-pensions account. The actual return on plan assets was $13 million although it was expected to be $14 million. On average, employees' remaining service life with the company is 15 years. What was the total pension cost for the year?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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