Question

Information regarding the defined benefit pension plan of Amber Beverages included the following for 2021($ in millions): Service cost Interest cost Actual and expected return on plan assets Amortization of net loss-AOCI Prior service cost-AOCI Employer contributions to the pension plan (end of year) $ 490 380 220 30 none 500 Amber should report pension expense for 2021 in the amount of: Multiple Choice O $870 million $680 million O $650 million $180 million

Answer 1

	The correct answer is option $680 million which is calculated as below:-
	Pension expense for 2021:-
	Particulars	Amt ($ in millions)
	Service Cost	490
Add:-	Interest Cost	380
Less:-	Expected return on plan assets	220
Add:-	Amortization of net loss-AOCI	30
	Pension expense	680