The following information is related to the defined benefit pension plan of simpson company for the year: service cost $ 96,000 contributions to pension plan 147,000 benefits paid to retirees 113,000 plan assets (fair value), january 1 543,000 plan assets (fair value), december 31 667,000 actual return on plan assets 90,000 pbo, january 1 830,000 pbo, december 31 896,000 discount rate 10 % long-term expected return on plan assets 9 % assuming no other relevant data exist, what is the pension expense for the year?

$130,130

Explanation:

Service cost = $ 96,000

PBO, January 1 = 830,000

Plan assets (fair value), January 1 = 543,000

Interest cost = PBO, January 1 × Discount rate

                     = 830,000 × 10%

                     = 83,000

Expected return on Plan assets:

= Plan assets (fair value), January 1 × Long-term expected return on plan assets

= 543,000 × 9%

= 48,870

pension expense:

= Service cost + Interest cost - Expected return on Plan assets

= $96,000 + 83,000 - 48,870

= $130,130

by knowing conditionality

explanation:

agriculture and oil. natural resources, industry.