Reference no: EM132909253
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) $170,000
Projected benefi t obligation 340,000
Pension asset/liability 170,000 Cr.
Prior service cost 100,000
OCI-Loss 39,000
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 $45,000
Actual return on plan assets in 2017 27,000
Amortization of prior service cost 20,000
Contributions in 2017 85,000
Benefits paid retirees in 2017 51,000
Settlement rate 7%
Expected return on plan assets 8%
Average remaining service life of active employees 10 years
Required -
(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.