Tuesday, 8 August 2023

The following information pertains to Lee Corp.'s defined benefit pension plan for year 1

 The following information pertains to Lee Corp.'s defined benefit pension plan for year 1 


Service cost $160,000

Actual and expected gain on plan assets 35,000 

Unexpected loss on plan assets related to a year 1 disposal of a subsidiary 40,000 

Amortization of unrecognized prior service cost 5,000

 Annual interest on pension obligation 50,000 


What amount should Lee report as pension cost in its year 2 income statement?

 Answer

$180,000


Thanks

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