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marishachu [46]
3 years ago
7

Pension data for David Emerson Enterprises include the following:_______.

Business
1 answer:
MrMuchimi3 years ago
8 0

Answer:

$151 million

Explanation:

Calculation to determine the service cost component of pension expense for the year ended December 31.

Projected benefit obligation, December 31 $485 million

Add Benefit payments to retirees, December 31 $58 million

Less Interest cost ($42 million)

(350*12%)

Less Projected benefit obligation, January 1 ($350 million)

Service cost $151 million

Therefore the service cost component of pension expense for the year ended December 31 will be $151 million

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