The following information is available for pension plan of Kiley Company for the year 2010.
|
Actual and expected return on plan assets
|
$12,000
|
|
Benefits paid to retirees
|
40,000
|
|
Contributions (funding)
|
95,000
|
|
Interest / discount rate
|
10%
|
|
Prior service cost amortization
|
8,000
|
|
Projected benefit obligation, Januuary 1, 2010
|
500,000
|
|
Service cost
|
60,000
|
Instructions
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.