Veldre Company provides the following information about its defined benefit pension plan for the year 2020. Service cost $ 90,000 Contribution to the plan 105,000 Prior service cost amortization 10,000 Actual and expected return on plan assets 64,000 Benefits paid 40,000 Plan assets at January 1, 2020 640,000 Projected benefit obligation at January 1, 2020 700,000 Accumulated OCI (PSC) at January 1, 2020 150,000 Interest/discount (settlement) rate 10% Instructions Compute the pension expense for the year 2020.
Veldre Company provides the following information about its defined benefit pension plan for the year 2020. Service cost $ 90,000 Contribution to the plan 105,000 Prior service cost amortization 10,000 Actual and expected return on plan assets 64,000 Benefits paid 40,000 Plan assets at January 1, 2020 640,000 Projected benefit obligation at January 1, 2020 700,000 Accumulated OCI (PSC) at January 1, 2020 150,000 Interest/discount (settlement) rate 10% Instructions Compute the pension expense for the year 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Veldre Company provides the following information about its defined benefit pension plan for the year 2020.
| Service cost |
$ 90,000
|
| Contribution to the plan |
105,000
|
| Prior service cost amortization |
10,000
|
| Actual and expected return on plan assets |
64,000
|
| Benefits paid |
40,000
|
| Plan assets at January 1, 2020 |
640,000
|
| Projected benefit obligation at January 1, 2020 |
700,000
|
| Accumulated OCI (PSC) at January 1, 2020 |
150,000
|
| Interest/discount (settlement) rate |
10%
|
Instructions
Compute the pension expense for the year 2020.
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