Question - The following information is available for the pension plan of Brady Company for the year 2010.
Actual and expected return on plan assets $15,000
Benefits paid to retirees 40,000
Contributions (funding) 90,000
Interest/discount rate 10%
Prior service cost amortization 8,000
Projected benefit obligation, January 1, 2010 500,000
Service cost 60,000
(a) Compute pension expense for the year 2010.
(b) Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2010.