(Pension Worksheet) Larson Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2013, the following balances related to this plan.
|
Plan assets (market related value) |
$270,000 |
|
Projected benefit obligation |
340,000 |
|
Pension asset/liability |
70,000 Cr. |
|
Prior service cost |
90,000 |
|
OCI—Loss |
39,000 |
As a result of the operation of the plan during 2013, the actuary provided the following additional data at December 31, 2013.
|
Service cost for 2013 |
$45,000 |
|
Actual return on plan assets in 2013 |
27,000 |
|
Amortization of prior service cost |
12,000 |
|
Contributions in 2013 |
65,000 |
|
Benefits paid retirees in 2013 |
41,000 |
|
Settlement rate |
7% |
|
Expected return on plan assets |
8% |
|
Average remaining service life of active employees |
10 years |
Instructions
(a) Compute pension expense for Larson Corp. for the year 2013 by preparing a pension worksheet that shows the journal entry for pension expense.
(b) Indicate the pension amounts reported in the financial statements.