Ashvinbhai Blossom, 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, 2026:January 1, 2026December 31, 2026Fair value of pension plan assets$6100000$6500000Projected benefit obligation69000007380000Accumulated benefit obligation11700001410000Accumulated OCI - (Gains/Losses)Actual return on plan assets0(70000)140000The service cost component of pension expense for 2026 is $850000 and the amortization of prior service cost due to an increase inbenefits is $90000. The settlement rate is 11%. Assuming that the actual return equals the expected return on plan assets, what is theamount of pension expense for 2026?○ $940000○ $1100000○ $1559000○ $1699000

To calculate the amount of pension expense for 2026, we need to consider various components,…

Answered: Blossom, Inc. received the following…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 7E

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