Reference no: EM131716677

Question - Husky Company maintains a defined benefit pension with First Hartford Trust. Below are the balances reported by First Hartford on January 1, 2017:

Plan Benefit Obligation             $520,000

Plan Assets                             $650,000

At the beginning of 2017, First Hartford informed Husky that its assumptions for the last five years have been off slightly, and they need to deposit an additional $150,000. Other matters for 2017 are:

The settlement rate is 10%.

The current service cost is $40,000.

Expected earnings are 8%.

Actual earnings are $62,000.

Prior service cost amortization is $25,000.

First Hartford Trust paid retirement benefits of $35,000.

Husky funded the plan $80,000.

Prepare the pension expense entry for 2017.

Determine the balance in the Pension Asset/Liability account stating if it is an asset or a liability.