(Pension Expense, Journal Entries) The following information is available for the pension plan of Kiley Company for the year 2010.

Instructions

(a) Compute pension expense for the year 2010.

(b) Prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2010.

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Actual and expected return on plan assets Benefits paid to retirees Contributions (funding) Interest/discount rate Prior service cost amortization Projected benefit obligation, January 1, 2010 Service cost $ 12,000 40,000 95,000 10% 8,000 500,000 60,000