mantle company sponsors a defined benefit pension plan the foll 263782

Mantle Company sponsors a defined-benefit pension plan. The following information related to the pension plan is available for 2008.

2008

Plan assets (fair value), January 1 ……………………$380,000

Projected benefit obligation, January 1 ………………..600,000

Pension liability, January 1 ……………………………220,000

Prior service cost, January 1 …………………………..180,000

Service cost …………………………………………….60,000

Actual and expected return on plan assets ……………..24,000

Amortization of prior service cost ……………………..10,000

Contributions (funding) ………………………………110,000

Interest/settlement rate …………………………………….9%

Instructions

(a) Compute pension expense for 2008.

(b) Prepare the journal entry (ies) to record the pension expense and the company’s funding of the pension plan for 2008.