The following facts apply to the pension plan of Boudreau plc for the year 2019.

Plan assets, January 1, 2019................................................£490,000

Defined benefit obligation, January 1, 2019........................490,000

Discount (interest) rate...................................................................8%

Service cost................................................................................40,000

Contributions (funding)...........................................................25,000

Actual return on plan assets...................................................39,200

Benefits paid to retirees.........................................................33,400

Instructions

Using the preceding data, compute pension expense for the year 2019. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2019 and the year-end balances in the related pension accounts.