(Basic Pension Worksheet) The following facts apply to the pension plan of Trudy Borke Inc.

for the year 2011.

Plan assets, January 1, 2011 $490,000 Projected benefit obligation, January 1, 2011 490,000 Settlement rate 8.5%

Service cost 40,000 Contributions (funding) 30,000 Actual and expected return on plan assets 49,700 Benefits paid to retirees 33,400 Instructions Using the preceding data, compute pension expense for the year 2011. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2011 and the year-end balances in the related pension accounts.