Question

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

Answer 1

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                                              $50 Million

Total Cost                                                           $94 Million

Less: Expected Return on Plant Asset            $31 Million

                                                                           $63 Million

Add: Amortization of a prior service cost        $05 Million

Pension expense reported by the company  $68 Million

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