The following information is provided by Millenium Falcon Importers (MFI) regarding their defined benefit pension plan. Pension...

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The following information is provided by Millenium FalconImporters (MFI) regarding their defined benefit pension plan.
Pension asset/liability (January 1) ($25,000)
Projected benefit obligation, January 1, 2017 ($700,000)
Settlement rate 10%
Service cost $80,000
Contribution in 2017 $150,000
Actual and expected return on plan assets $10,000
Benefits paid to retirees $33,400
Prior service cost amortization for 2017 $60,000
What is the amount of pension expense that MFI should report for2017?

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Computation of Pension expenses 2017 of MFI

Service cost $80,000

+ Interest on Projected benefit obligation $70,000

- Actual and expected return on plan assets ($101,600)

+Prior service cost amortization for 2017 $60,000

Pension expense $108,400

Computation of actual return on plan assets

plan assets / liabilities............................................................... (25,000)

Actual and expected return on plan assets 10,000

Deduct: Contributions........................................... $150,000

Less: Benefits paid................................ 33,400 116,600

Actual return on plan assets................................. $ 101,600

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The following information is provided by Millenium FalconImporters (MFI) regarding their defined benefit pension plan.Pension asset/liability (January 1) ($25,000)Projected benefit obligation, January 1, 2017 ($700,000)Settlement rate 10%Service cost $80,000Contribution in 2017 $150,000Actual and expected return on plan assets $10,000Benefits paid to retirees $33,400Prior service cost amortization for 2017 $60,000What is the amount of pension expense that MFI should report for2017?