Hubbard, Inc. received the following information from its pension plan trustee concerning the operation of...
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Hubbard, 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.
|
| 1/1/18 |
| 12/31/18 |
| Projected benefit obligation | $13,300,000 | $13,720,000 |
| Pension assets (at fair value) | 7,000,000 | 8,050,000 |
| Accumulated benefit obligation | 2,800,000 | 3,220,000 |
| Net (gains) and losses | -0- | 280,000 |
The service cost component of pension expense for 2018 is $1,040,000 and the amortization of prior service cost due to an increase in benefits is $210,000. The settlement rate is 10% and the expected rate of return is 8%. What is the amount of pension expense for 2018?
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