FMC Inc. provides its employees with a defined benefit pension plan, details of which follow: Pension obligation 12/31/20X5 $7,000,000 Plan assets 12/31/20X5 $5,900,000 Discount rate used in actuarial...




FMC Inc. provides its employees with a defined benefit pension plan, details of which follow:


Pension obligation 12/31/20X5$7,000,000


Plan assets 12/31/20X5$5,900,000


Discount rate used in actuarial assumptions4%


Current service cost for the year — end of year $590,000


Past service cost (improvement in benefits) — 01/01/20X6$60,000


Actuarial gain due to a change in assumption $0


Actual return on plan assets$275,000


Remitted to pension trustee — evenly throughout year $670,000


Payments to retirees — evenly throughout year$640,000


What is the net amount that will be charged to pension expense for FMC Inc.'s December 31, 20X6 year end?




Dec 06, 2021
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