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3 . ABC Co . sponsors a defined benefit pension plan for its employees. On January 1 , 2 0 2 0 , the following

3. ABC Co. sponsors a defined benefit pension plan for its employees. On January 1,2020, the following balances related to this plan.
Plan assets (market-related value) $600,000
Projected benefit obligation 800,000
Pension asset/liability 200,000 Cr.
Prior service cost 90,000
OCI - Loss 120,000
As a result of the operation of the plan during 2020, the actuary provided the following additional data for 2020.
Service cost $105,000
Actual return on plan assets 60,000
Amortization of prior service cost 10,000
Contributions 120,000
Benefits paid to retirees 80,000
Average remaining service life of active employees 5 years
Settlement rate 8%
Expected rate of return 10%
a. Compute the annual pension expense for 2020.(6 pts)
b. Compute the projected benefit obligation at December 31,2020.(3 pts)
c. Compute the fair value of plan assets at December 31,2020.(3 pts)
d. Prepare the journal entry for the pension expenses in 2020.(8 pts)

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