Answer:
Pension expenses = $85,000
Explanation:
Missing word: "the plan. On December 31, 2017, the actuary calculated that the present value of future benefits earned for employee services rendered in the current year amounted to $52,000: the projected benefit obligation was $490,000; fair value of pension assets was $276,000: the accumulated benefit obligation amounted to $365,000. The expected return on plan assets and the discount rate on the projected benefit obligation were both 10%. The actual return on plan assets is $11.000. The company's current year's contribution to the pension plan amounted to $65,000. No benefits were paid during the year. Instructions Determine the components of pension expense that the company would recognize in 2017. (With only one year involved, you need not prepare a worksheet.)"
Particulars                                 Amount
Service cost                               $52,000
Interest on projected benefit obligation at 10% Â Â $38,000 (380,000*10%)
Actual return on plan asset                   ($11,000)
Unexpected loss                           ($9,000)
Amortization of gain or loss                      -
Amortization of prior service cost              $15,000
Pension Expenses                           $85,000
