The following facts apply to the pension plan of Boudreau Inc. for the year 2012.
| Plan assets, January 1, 2012 |
|
$490,300 |
|
| Projected benefit obligation, January 1, 2012 |
|
490,300 |
|
| Settlement rate |
|
8 |
% |
| Service cost |
|
42,100 |
|
| Contributions (funding) |
|
26,680 |
|
| Actual and expected return on plan assets |
|
48,070 |
|
| Benefits paid to retirees |
|
35,080 |
|
Using the preceding data, compute pension expense for the year 2012. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2012 and the year-end balances in the related pension accounts.