Potter
Corporation is a private enterprise and has elected to use the immediate
recognition approach to account for its defined benefit pension plan. The
following information (in hundreds of thousands of dollars) is available for
Potter Corporation for 2011:
Actual
return on plan assets …………………….. 9
Current
service cost ……………………………. 19
Benefits
paid to retirees ………………………… 10
Interest
cost …………………………………….. 11
Contributions
from employer …………………… 20
Opening
balance, ABO, funding basis …………. 100
Opening
balance, fund assets …………………… 100
At
the end of the year, Potter Corporation revised the terms of its pension plan,
which resulted in past service costs of $35.
Determine
the pension expense that should be reported on Potter Corporation’s December
31, 2011 income statement.
Interest cost 11
Current service cost 19
Actual return on plan assets (9)
Past cost of plan amendment in year 35
Pension expense $56
