The records relating to the defined benefit pension plan of Broad Company include a $44 million service cost, a $50 million interest cost, a $31 million expected return on plan assets, and $5 million for amortization of a prior service cost.

a. What is the amount of pension expense that will be reported by the company?

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Business

Tori Mcdowell

21 July, 22:02

The records relating to the defined benefit pension plan of Broad Company include a $44 million service cost, a $50 million interest cost, a $31 million expected return on plan assets, and $5 million for amortization of a prior service cost.

a. What is the amount of pension expense that will be reported by the company?

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Answers (1)

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Nash Lucas · Answer 1

The amount of pension expense reported by the company is $68 Million

Explanation:

the particulars of pension expense that will recognized and reported by the company.

Service Cost $44 Million

Add: Interest Cost $50 Million

Total Cost $94 Million

Less: Expected Return on Plant Asset $31 Million

$63 Million

Add: Amortization of a prior service cost $05 Million

Pension expense reported by the company $68 Million

Thus, the Pension expense reported by the company is $68 Million