Reference no: EM132595009

Renegade Corp. provides its employees with a defined benefit pension plan. The balances as at January 1, 20X4, were as follows:

Pension obligation $7,000,000

Plan assets $5,900,000

Other information pertaining to the pension plan during 20X4 is as follows:

Interest rate used in actuarial assumptions 4%

Current service cost for the year $590,000

Past service cost (improvement in benefits) - end of year $60,000

Actuarial gain due to a change in assumption $25,000

Actual return on plan assets $275,000

Remitted to pension trustee - end of year $670,000

Payments to retirees - end of year $640,000

Question 1: What is the net amount that will be charged to pension expense for Renegade's 20X4 fiscal year end?