The following information refers to Dora Company's defined benefit pension plan for the current year. Service cost: $3,000; interest cost: $2,000; amortization of prior service cost: $700; amortization of net loss: $300; expected return on plan assets: $3,000. Recognition of pension expense will include (Select all that apply.)

Debit to plan assets for $3,000 and Credit to PBO of $5,000

Explanation:

Based on the information given we were told that the return on plan assets is the amount of $3,000 while the pension plan for the current year include Service cost of the amount of $3,000 and interest cost of the amount of $2,000 which means that the Recognition of pension expense will include :

Debit to plan assets for $3,000

Credit to PBO of $5,000

(Service cost $3,000+ interest cost: $2,000)

answer; (inseparability);

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