What is the 2021 pension expense?
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 6MC
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![Verizon Communications has a defined benefit pension plan with the following information:
2021
2022
Beginning
Beginning
balances
balances
($ in thousands)
Projected benefit obligation
$(6,700)
$(7,204)
Plan assets
6,400
7,036
Prior service cost-AOCI
670
640
Net loss-AOCI
$
790
$
850
At the end of 2021, Verizon contributed $730 thousand of cash to the pension fund. Retirees of the company were paid $664
thousand. The plan asset's expected rate of return was 10%, and the discount rate on the obligations was 8%. There were no
changes in actuarial estimates and assumptions regarding the PBO.
What is the 2021 pension expense?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0deeab4e-d8af-4442-bc0c-f7e9af0f3f47%2F8e6f0205-c729-417d-aee1-d38201cfa2ed%2Fb9qg9pf_processed.png&w=3840&q=75)
Transcribed Image Text:Verizon Communications has a defined benefit pension plan with the following information:
2021
2022
Beginning
Beginning
balances
balances
($ in thousands)
Projected benefit obligation
$(6,700)
$(7,204)
Plan assets
6,400
7,036
Prior service cost-AOCI
670
640
Net loss-AOCI
$
790
$
850
At the end of 2021, Verizon contributed $730 thousand of cash to the pension fund. Retirees of the company were paid $664
thousand. The plan asset's expected rate of return was 10%, and the discount rate on the obligations was 8%. There were no
changes in actuarial estimates and assumptions regarding the PBO.
What is the 2021 pension expense?
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