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Lera25 [3.4K]
3 years ago
6

The records relating to the defined benefit pension plan of Broad Company include a $44 million service cost, a $50 million inte

rest 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?
Business
1 answer:
NeX [460]3 years ago
4 0

Answer:

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                                              <u>$50 Million</u>

Total Cost                                                           $94 Million

Less: Expected Return on Plant Asset           <u>  $31 Million</u>

                                                                           $63 Million

Add: Amortization of a prior service cost        <u>$05 Million</u>

Pension expense reported by the company  $68 Million

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

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