A government has a defined contribution plan for its General Fund employees. During the year, it contributed $1,080,000 to its employees' individual defined contribution retirement accounts. At its fiscal year-end, the government still owes $180,000 to its employees' individual defined contribution retirement accounts according to the benefit terms of the defined contribution plan. How much should the government report as expenditures for pensions for its current fiscal year?

$1,260,000

Explanation:

Calculation for How much should the government report as expenditures for pensions for its current fiscal year

Based on the information we were told that

the government made contribution of the amount of $1,080,000 to their employees contribution retirement accounts in which at the government fiscal year-end, they still owes the amount of $180,000 to their employees contribution retirement accounts which means that the amount that the should government report as expenditures for pensions for theri current fiscal year will be:

Using this formula

Pension Expenditures=Amount contributed to the employees retirement accounts+ Amount owes by the government to its employees contribution retirement accounts

Let plug in the formula

Pension Expenditures=$1,080,000+$180,000

Pension Expenditures=$1,260,000

Therefore the amount that the government should report as expenditures for pensions for its current fiscal year will be $1,260,000

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