Blossom Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2025
and 2026.
2025
2026
Plan assets (fair value), December 31
$705.990
$857,490
Projected benefit obligation, January 1
707,000
808,000
Pension asset/liability, January 1
141,400 Cr.
?
Prior service cost, January 1
252.500
242,400
Service cost
60,600
90,900
Actual and expected return on plan assets
24,240
30,300
Amortization of prior service cost
10,100
12,120
Contributions (funding)
116,150
121,200
Accumulated benefit obligation, December 31
505,000
555,500
Interest/settlement rate
9%
9%
No benefits were paid in 2025 or 2026.
(a)
Your answer is incorrect.
Compute pension expense for 2025 and 2026.
Pension expense for 2025
$
158570
Pension expense for 2026
$
206040