The controller of Linnaeus Company is reviewing pension information provided by his staff. The information indicates...

The controller of Linnaeus Company is reviewing pension information provided by his staff. The information indicates that current period service costs amount to $165,000. The projected benefit obligation at the beginning of the year was $1,100,000, and there were no changes in any assumptions used to arrive at that number, including the 9% discount rate. The accumulated benefit obligation was $675,000. Prior service costs amount to $480,000 and are to be amortized over 12 years.

Plan assets at the beginning of the year had a fair market value of $800,000 and were expected to provide a return of 10%. However, the actual return on plan assets for the year was $96,000. Net unamortized gains and losses from prior periods amount to a net gain of $210,000. Gains and losses are amortized over 20 years. Assume that the company chooses not to use the corridor approach for amortizing gains and losses but amortizes based upon the balance in the account as of the beginning of the year.

REQUIRED: Calculate the net pension expense for the period, showing all supporting computations.

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ekkarill92 answered 1 year ago

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