(L01,2,5) (Pension Expense, Journal Entries) Latoya Company provides the following selected information related to its defined benefit pension plan for 2017.

Pension asset/liability (January 1) $ 25,000 Cr.

Accumulated benefi t obligation (December 31) 400,000 Actual and expected return on plan assets 10,000 Contributions (funding) in 2017 150,000 Fair value of plan assets (December 31) 800,000 Settlement rate 10%

Projected benefi t obligation (January 1) 700,000 Service cost 80,000 Instructions

(a) Compute pension expense and prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2017. Preparation of a pension worksheet is not required. Benefits paid in 2017 were $35,000.

(b) Indicate the pension-related amounts that would be reported in the company’s income statement and balance sheet for 2017.