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32. Measuring and recording pension expense. Kessler, Inc. received the following information from its pension plan trustee concerning the operation of the company's defined-benefit pension

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32. Measuring and recording pension expense. Kessler, Inc. received the following information from its pension plan trustee concerning the operation of the company's defined-benefit pension plan for the year ended December 31,2016: January 1, 2016 Decer Projected benefit obligation Fair value of plan assets Accumulated benefit obligation Accumulated OCI-(PSC) S2,500,000 1,250,000 1,930,000 540,000 $2,850,000 1,600,000 2,620,000 300,000 The service cost component for 2016 is $120,000 and the amortization of prior service cost is $240,000. The company's actual funding of the plan in 2016 amounted to $490,000. The actual return on plan assets is $100,000. The settlement rate (interest rate on the projected benefit obligation) is 8%. Instructions (a) Determine the pension expense to be reported in 2016. (b) Prepare the journal entry to record pension expense and the employers' contribution to the pension plan in 2016

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