Big Bad Accountants Inc. provides its employees with a defined benefit pension plan, details of which follow:
Pension obligation, December 31, 2025
Plan assets December 31, 2025
Discount rate used in actuarial assumptions
Current service cost for the year\end of year
Past service cost \-- accrued at the beginning of the year Jan 1, 2026
Actuarial gain due to a change in assumption
Actual return on plan assets
Contributions remitted to pension trustee \-- evenly throughout year
Payments to retirees \-- evenly throughout year
What is the net amount that will be charged to pension expense for December 31, 2026 year end?
$694,000
$623,000
$683,000
$644,600
$7,000,000
$5,900,000
4%
$590,000
$60,000
$0
$275,000
$670,000
$640,000