Reference no: EM132873338

Presented below is pension information related to Banana Inc. for the calendar year 2020. The corporation uses ASPE.

Current service costs ............................................................$ 50,000
Contributions to the plan ......................................................55,000
Actual return on plan assets .................................................45,000
Accrued benefit obligation (beginning of year) ...................600,000
Fair value of plan assets (beginning of year) .......................400,000
Interest cost on the obligation .............................................. 10%

Problem 1: The pension expense to be reported for 2020 is

a) $ 110,000.
b) $ 70,000.
c) $ 65,000.
d) $ 50,000.