Solution-What is the pension expense

What is the pension expense

Reference no: EM133090133

Question - The Sophia Company adopted a defined benefit pension plan on January 1, 2015, and prior service credit was granted to employees. The present value of those benefits was calculated to be $1,245,300 at that date. The service cost is funded in full at the end of each year, plus an additional amount of $225,000 is funded each year-end. The unrecognized prior service cost is being amortized by the straight-line method over the remaining 10-year service life of the company's active employees. Additional information relating to the company's pension plan is presented below:

	2015	2016
Service cost (annual)	$105,000	$125,000
Unrecognized prior service cost amortization	124,530	124,530
Interest cost	10%	10%
Expected (and actual) return on plan assets	10%	10%

Required - What is the pension expense for 2015?

Reference no: EM133090133

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What is the pension expense

Reference no: EM133090133

Reference no: EM133090133

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