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Pension Expenses in a Company

The following information for Norman Enterprises is given below:

December 31, 2004
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Assets and obligations
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Plan assets (at fair value) $2,700,000
Market-related asset value 2,610,000
Accumulated benefit obligation 2,880,000
Projected benefit obligation 4,140,000

Amounts to be Recognized
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Prepaid/(accrued) pension cost at beginning
of year (72,000)
Pension expense (540,000)
Contribution 486,000
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Prepaid/(accrued) pension cost at end of year $(126,000)

Unrecognized prior service costs $ 618,750
Unrecognized gains (net) (315,000)

What is the pension expense that Norman Enterprises should report
for 2004?
a. $378,000.
b. $486,000.
c. $180,000.
d. $540,000.

Solution Summary

This solution discusses pension expenses in a company.

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