Buhl Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2012, the following balances relate to this plan.
|
Plan assets |
$480,000 |
|
Defined benefit obligation |
625,000 |
|
Pension asset/liability |
45,000 |
|
Unrecognized past service cost |
100,000 |
As a result of the operation of the plan during 2012, the following additional data are provided by the actuary.
|
Service cost for 2012 |
$90,000 |
|
Discount rate, 9% |
|
|
Actual return on plan assets in 2012 |
57,000 |
|
Amortization of past service cost |
19,000 |
|
Expected return on plan assets |
52,000 |
|
Unexpected loss from change in defined benefit obligation, due to change in actuarial predictions |
76,000 |
|
Contributions in 2012 |
99,000 |
|
Benefits paid retirees in 2012 |
85,000 |
Instructions
(a) Using the data above, compute pension expense for Buhl Corp. for the year 2012 by preparing a pension worksheet that shows the journal entry for pension expense and the year end balances in the related pension accounts.
(b) At December 31, 2012, prepare a schedule reconciling the funded status of the plan with the pension amount reported on the statement of financial position.