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What is the pension expense?

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Service cost $30,000
Interest cost $18,000
Actual return on plan assets $15,000
Beginning of year plan assets $200,000
Settlement rate 8%
Expected return on plan assets 8%
What is the pension expense?

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Solution Summary

The classic three items in pension expense are given and discussed along with a computation.

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Pension expense is the classic three things, netted:

Add: Service cost (one more year of employee service)............................................ $30,000.00
Add: Interest ...

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