Reference no: EM133050793
Question - Lee Electronics, Inc. reported the following information related to its defined-benefit pension plan at December 31, 2020:
Projected benefit obligation $320,000
Pension plan assets (held by a trustee) $400,000
The plan was subject to the following pension-related circumstances during 2021:
The interest (discount) rate in the marketplace remained at 5% throughout the year.
Lee's actuary determined that the pension portion of cost related to work performed by covered employees during the year was $60,000.
In 2019, an amendment to the plan resulted in prior service cost of $40,000. Each year, one-tenth of this cost is amortized to expense.
The pension plan asset balance at December 31st, at market value, was $445,000. Lee contributed $30,000 to the fund in 2021, and the plan participants received $20,000 in benefits during the year.
There were no actuarial changes in the pension liability or revisions to the investing strategies for the plan's assets during 2021.
Based on the information above, determine pension expense for the year ended December 31, 2021. Prepare a formal schedule to support your answer, with sufficient detail to support your calculation for each element of expense.
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