(Pension Worksheet) Farber Corp. sponsors a defined benefit pension plan for its employees.

On January 1, 2012, the following balances related to this plan.

As a result of the operation of the plan during 2012, the actuary provided the following additional data at December 31, 2012.

Instructions Using the preceding data, compute pension expense for Farber Corp. for the year 2012 by preparing a pension worksheet that shows the journal entry for pension expense. Use the market-related asset value to compute the expected return and for corridor amortization.

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Plan assets (market-related value) Projected benefit obligation Pension asset/liability $520,000 725,000 205,000 Cr. Prior service cost Net gain or loss (debit) 81,000 91,000