Duster
Corporation is a private enterprise and has a defined benefit pension plan that
is accounted for under the immediate recognition approach. The following
information is available for Duster Corporation for 2011:
Service
cost ………………………………. $58,000
Interest
on ABO, funding basis …………. 23,000
Expected
return on plan assets ………….. 25,000
Actual
return on plan assets ……………… 27,000
Calculate
Duster’s 2011 pension expense.
Service cost $58,000
Interest on ABO 23,000
Actual return on plan assets (27,000 )
Pension expense $54,000
