2. Howard Corp. sponsors a defined-benefit pension plan for its employees. On January 1, 2022, the following balances related to this plan.
Plan assets (fair value) £450,000
Defined benefit obligation 600,000
Pension asset/liability 150,000 Cr.
As a result of the operation of the plan during 2022, the actuary provided the following additional data at December 31, 2022.
Service cost for 2022 £ 75,000
Actual return on plan assets in 2022 45,000
Past service cost, effective Jan. 1 120,000
Contributions in 2022 115,000
Benefits paid retirees in 2022 70,000
Discount rate 8%
Average remaining service life of active employees 10 years
Instructions
What is the pension expense for Howard Corp. for the year 2022?