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?