The information is provided regarding a company’s December 31, 2010 defined benefit pension plan: Service cost $ 540,000 Projected benefit obligation, Jan. 1 4,000,000 Fair value plan assets

The information is provided regarding a company’s December 31, 2010 defined benefit pension plan:

Service cost $ 540,000

Projected benefit obligation, Jan. 1 4,000,000

Fair value plan assets, Jan. 1 3,300,000

Amortization of unrecognized prior service cost for the year 270,000

Interest cost 8%

Expected (and actual) return on plan assets 10%

Be sure to show your work

Compute the amount of pension expense for 2010

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