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6 June, 00:51

The records relating to the defined benefit pension plan of Broad Company include a $44 million service cost, a $50 million interest cost, a $31 million expected return on plan assets, and $5 million for amortization of a prior service cost.

a. What is the amount of pension expense that will be reported by the company?

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  1. 6 June, 01:00
    0
    The amount of pension expense reported by the company is $68 Million

    Explanation:

    the particulars of pension expense that will recognized and reported by the company.

    Service Cost $44 Million

    Add: Interest Cost $50 Million

    Total Cost $94 Million

    Less: Expected Return on Plant Asset $31 Million

    $63 Million

    Add: Amortization of a prior service cost $05 Million

    Pension expense reported by the company $68 Million

    Thus, the Pension expense reported by the company is $68 Million
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