Towson Company has experienced tough competition for its talented workforce, leading it to enhance the pension benefits provided to employees. As a result, Towson amended its pension plan on January 1, 2020, and granted past service costs of $250,000. Current service cost for 2020 is $52,000. Interest expense is $18,000, and interest revenue is $5,000. Actual return on assets in 2020 is $3,000. What is Towson's pension expense for 2020? a. $65,000. b. $302,000. c. $317,000. d. $315,000.
Towson Company has experienced tough competition for its talented workforce, leading it to enhance the pension benefits provided to employees. As a result, Towson amended its pension plan on January 1, 2020, and granted past service costs of $250,000. Current service cost for 2020 is $52,000. Interest expense is $18,000, and interest revenue is $5,000. Actual return on assets in 2020 is $3,000. What is Towson's pension expense for 2020? a. $65,000. b. $302,000. c. $317,000. d. $315,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Towson Company has experienced tough competition for its talented workforce, leading it to enhance the pension benefits provided to employees. As a result, Towson amended its pension plan on January 1, 2020, and granted past service costs of $250,000. Current service cost for 2020 is $52,000. Interest expense is $18,000, and interest revenue is $5,000. Actual return on assets in 2020 is $3,000. What is Towson's pension expense for 2020?
a. $65,000.
b. $302,000.
c. $317,000.
d. $315,000.
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