>> Accounting Basics
Raspberry Company's actuary has computed its prior service cost to be $8,000,000. The company amortizes the prior service cost by the straight line method over the remaining 20 year service life of its active employees. During the current year, the company also recognizes service cost of $560,000 and interest cost of $100,000. At the beginning of the year, the plan assets were $1,500,000, and the company expects to earn 10% on its plan assets. Compute Raspberry Company's pension expense for the current year.