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The projected benefit obligation was $440 million at the beginning of the year. Service cost for the year was $48 million. At the end of the year, pension benefits paid by the trustee were $25 million and there were no pension-related other comprehensive income accounts requiring amortization. The actuary's discount rate was 5%. The actual return on plan assets was $24 million although it was expected to be only $23 million.
What was the pension expense for the year?

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Parrain

Answer:  $47 million

Explanation:

Pension expense arises as a result of the amounts owed to employees in relation to pension liabilities.

It is calculated by;

= Service Cost + Interest expense - Expected return on plan assets +  Amortization of prior service cost + Amortization of net loss

= 48 + ( 440 * 5%) - 23

= $47 million

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