Compute pension expense for Jablonski Corp

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Question - Jablonski Corp. sponsors a defined benefit pension plan for its employees.

On January 1, 2017, the following balances related to this plan.

Plan assets (market-related value) $450,000

Defined benefit obligation 600,000

As a result of the operation of the plan during 2017, the actuary provided the following additional data at December 31, 2017.

Service Cost for 2017 $75,000

Actual return on plan assets $45,000

Past service cost effective Jan 1 2017 $120,000

Contributions in 2017 $115,000

Benefits paid to retirees $70,000

Discount rate 8%

Average remaining service life of active employees 35 years

(a) Compute pension expense for Jablonski Corp. for the year 2017 by preparing a pension worksheet that shows the journal entry for pension expense.

(b) Indicate the pension amounts reported in the financial statements.

Reference no: EM132898275

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