This question was created from Week 5 Discussion.docx

Water Inc. has the following balances at 1/1/10 that relate to its defined-benefit pension plan:
Plan Assets
$800,000
Net Pension Asset
100,000
Accumulated OCI (PSC)
120,000
During 2010, the following additional data is available:
Service Cost for 2010
$75,000
Settlement rate
20%
Actual return on plan assets in 2010
65,000
Amortization of prior service cost
10,000
Expected return on plan assets
60,000
Unexpected
loss
from
change
in
projected
65,000
benefit
obligation,
due to change in actuarial predictions
Contributions in 2010
90,000
Benefits paid to retirees in 2010
75,000
Required: Compute pension expense for the year 2010