At the beg of 2016 the actuary determines that the


Problem

Presented below is infomration related to a pension plan for 2016:

Service Cost- $55,000

Funding Contribution for 2016- 53,000

Settlement rate used in actuarail computation- 8%

Expected return on plan assets 7%

Actual return on plan assets 8%

Amortization of PSC $90,000

PBO beg. of period- 540,000

Fair value of plan assets beg. of period- 360,000

Accumulated benefit obligation- 739,600

Average remianing service life of all employees- 20 Years

Vested benefit obligation at Dec 31 768,000

At the beg. of 2016, the actuary determines that the retirement period for all retiress will increase by an average of 2 years, increasing the PBO by $129,000

1). What is the pension expense for 2016?

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Accounting Basics: At the beg of 2016 the actuary determines that the
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