Answer:
Pension Expense = $104,730
(See explanation for worksheet)
Explanation:
Pension worksheet inserting January 1, 2017, balances, showing December 31, 2017.
Computation of pension expense:
Service cost ------------------------------------ $91,100
Interest cost ($694,300 x 10%) --------- $69,430
Expected return on plan assets ------ ($65,100)
Prior service cost amortization ----------- $9,400
Pension expense for 2017 is then calculated by:
Service Cost + Interest Cost + Prior Service Cost Amortization - Expected Return on Plan Assets
Pension Expense = $91,000 + $69,430 + $9,400 - $65,100
Pension Expense = $104,730
