Measuring and Recording Pension Expense
Gregory, Inc. received the following information from its pension plan trustee concerning the operation of the company's defined benefit pension plan for the year ended December 31, 2013:
January 1, 2013 December 31, 2013
Projected benefit obligation $3,500,000 3,990,000
Market-related asset value 1,750,000 2,240,000
Unrecognized net (gains) and losses -0- 420,000
The service cost component for 2013 is $210,000 and the amortization of prior service cost is $240,000. The company's actual funding of the plan in 2013 amounted to $595,000. The expected return on plan assets and the settlement rate were both 8%. The actual return on plan assets was $150,000.
Determine the pension expense to be reported in 2013.