The following facts apply to the pension plan of Boudreau Inc. for the year 2015.

Instructions Using the preceding data, compute pension expense for the year 2015. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2015 and the year-end balances in the related pension accounts.

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Plan assets, January 1, 2015 490,000 Defined benefit obligation, January 1, 2015 490,000 Discount (interest) rate 8% Service cost 40,000 Contributions (funding) 25,000 Actual return on plan assets 39,200 Benefits paid to retirees 33,400