What is the pension expense for the year

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Question - The following information is related to the defined benefit pension plan of Dreamworld Company for the year:

Service cost $65,000

Contributions to pension plan 120,000

Benefits paid to retirees 154,000

Plan assets (fair value), January 1 650,000

Plan assets (fair value), December 31 775,000

Actual return on plan assets 159,000

PBO, January 1 945,000

PBO, December 31 950,500

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?

a. $101,000.

b. $159,500.

c. $99,000.

d. $65,000.

Reference no: EM132604608

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