Thursday, 28 July 2016

Refer to BE19-10. Ignoring any differences in the actuarial

Refer to BE19-10. Ignoring any differences in the actuarial valuation basis for the ABO, calculate the pension expense for Uddin Corporation assuming that it elected to apply the immediate recognition approach.


Service cost                                       $27,500
Interest on ABO                                    25,000
Actual return on plan assets                      (30,000 )
Pension expense                                    $22,500