Frisco, Inc. received the following information from its pension plan trustee concerning the operation of...
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Accounting
Frisco, 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, 2018.
January 1, 2018 December 31, 2018
Fair value of pension plan assets $5,400,000 $6,000,000
The service cost component of pension expense for 2018 is $600,000 and the amortization of prior service cost due to an increase in benefits is $100,000. The settlement rate is 8% and the expected rate of return is 9%. What is the amount of pension expense for 2018?
a.
$660,000
b.
$600,000
c.
$678,000
d.
$796,000
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