Buhl Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2014, the following balances relate to this plan.

Plan assets ......... $480,000

Defined benefit obligation ... 600,000

Pension asset/liability ..... 120,000

As a result of the operation of the plan during 2014, the following additional data are provided by the actuary.

Service cost for 2014 ................ $90,000

Discount rate, 6%

Actual return on plan assets in 2014 .......... 55,000

Unexpected loss from change in defined benefit obligation,

due to change in actuarial predictions .......... 76,000

Contributions in 2014 ................ 99,000

Benefits paid retirees in 2014 .............. 85,000

Instructions

(a) Using the data above, compute pension expense for Buhl Corp. for the year 2014 by preparing a pension worksheet.

(b) Prepare the journal entry for pension expense for 2014.