5. Barton, Inc. received the following information from its pension plan trustee concerning the operation...
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5. Barton, Inc. received the following information from its pension plan trustee concerning the operation of the company's defined-benefit pension plan for the year ended December 31, 2020.
January 1, 2020 December 31, 2020
Fair value of pension plan assets $4,200,000 $4,500,000
Projected benefit obligation 4,800,000 5,160,000
Accumulated benefit obligation 840,000 1,020,000
Accumulated OCI (Gains / Losses) -0- (90,000)
The service cost component of pension expense for 2020 is $450,000 and the amortization of prior service cost due to an increase in benefits is $60,000. The settlement rate is 10% and the expected rate of return is 9%. What is the amount of pension expense for 2020?
a. $450,000
b. $612,000
c. $621,000
d. $522,000
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