Question

Colombo Enterprises has a defined benefit pension plan. At the end of the reporting year, the following data were available: beginning PBO, $75,000; service cost, $14,000; interest cost, $6,000; benefits paid for the year, $9,000; ending PBO, $89,000; and the expected return on plan assets, $10,000. There were no other pension-related costs. The journal entry to record the annual pension costs will include a debit to pension expense for: Multiple Choice $20,000. $15,000. $12,000. $10,000..

Answer 1

Option D. $10,000 is the correct answer.

Step-by-step explanation:

Journal Entry for pension expenses:

Pension Expense $10,000

Cash $10,000

(To record pension expenses)

Pension expenses for the year ended is comprised of the following components of pension cost.

Service Cost $14,000

Interest cost $6,000

Expected return on plan assets $10,000

__________

Pension expenses $10,000