On December 31, 2016, Robey Company accumulated the following information for 2016 in regard to its defined benefit pension plan:
Service cost ................ $ 105,000
Interest cost on projected benefit obligation .... 12,000
Expected return on plan assets .......... 11,000
Amortization of prior service cost ........ 2,000
On its December 31, 2015, balance sheet, Robey had reported an accrued/prepaid pension cost liability of $14,000.
Required:
1. Compute the amount of Robey’s pension expense for 2016.
2. Prepare all the journal entries related to Robey’s pension plan for 2016 if it funds the pension plan in the amount of
(a) $108,000,
(b) $107,000,
(c) $112,000.
3. Next Level Assuming Robey’s beginning 2016 Accumulated Other Comprehensive Income: Prior Service Cost balance was $60,000 what would be its ending balance?
4. Next Level How much would Robey need to fund its pension plan for 2016 in order to report an accrued/ prepaid pension cost asset of $5,000 at the end of 2016?