(Pension Expense, Journal Entries for 2 Years) Mantle Company sponsors a defined benefit pen- ve - sion plan. The following information related to the pension plan is available for 2010 and 2011.

Instructions

(a) Compute pension expense for 2010 and 2011.

(b) Prepare the journal entries to record the pension expense and the company’s funding of the pension plan for both years.

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2010 2011 Plan assets (fair value), December 31 Projected benefit obligation, January 1 Pension asset/liability, January 1 Prior service cost, January 1 Service cost Actual and expected return on plan assets $694,000 600,000 $844,000 700,000 40,000 Cr. ? 250,000 240,000 60,000 90,000 24,000 30,000 Amortization of prior service cost 10,000 12,000 Contributions (funding) 110,000 120,000 Accumulated benefit obligation, December 31 500,000 550,000 Interest/settlement rate 9% 9%