A Company's Defined Benefit Pension Plan Incurs Current Service Cost

A company's defined benefit pension plan incurs current service cost of $3,000,000.Expected income on the pension plan's assets amounted to $9,800,000,while actual income was $9,900,000.The interest on the pension obligation was $10,000,000,which matched the actuarial estimates.The pension plan has no past service costs,and unamortized actuarial gains or losses at the beginning of the year are within the corridor limit.
Requirement:
Compute the amount of pension expense for the year.

Correct Answer:

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Note that it is the expected i...

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