(Pension Worksheet) Webb Corp. sponsors a defined-benefit pension plan for its employees. On January 1, 2010, the following balances relate to this plan.
Plan assets $480,000
Projected benefit obligation 600,000
Pension asset/liability 120,000
Accumulated OCI (PSC) 100,000
As a result of the operation of the plan during 2010, the following additional data are provided by the actuary.Service
cost ................................................................................. $90,000
Settlement rate, ................................................................................... 9%
Actual return on plan assets .......................................................... 55,000
Amortization of prior service cost .................................................... 19,000
Expected return on plan assets ...................................................... 52,000
Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions ........ 76,000
Contributions ................................................................................. 99,000
Benefits paid retirees ..................................................................... 85,000
(a) Using the data above, compute pension expense for Webb Corp. for the year 2010 by preparing a pension worksheet.
(b) Prepare the journal entry for pension expense for 2010.