Answer:
Pension Expense = $29,200,000
Explanation:
As per the data given in the question,
1)
Service cost = $25,000,000
Interest cost = $15,000,000
Expected return on the plan assets = $10,800,000
( 12% × $90,000,000)
Pension Expense = $29,200,000
($25,000,000 + $15,000,000 - $10,800,000)
2)
Journal entries to record the pension expense :
Pension expense A/c Dr. $29,200,000
To accrued pension cost A/c $6,200,000
To Cash A/c $23,000,000
($29,200,000 - $6,200,000)
