BEST CO sponsors a defined benefit pension plan for its employees.

On January 1, 2010, the following balances relate to this plan.

GHS Plan assets 480,000

Defined benefit obligation 625,000

Pension asset/liability 45,000

Unrecognized past service cost 100,000

As a result of the operation of the plan during 2010, the following additional data are provided by the actuary. Service cost for 2010 is 90,000

Discount rate, 9%

Actual return on plan assets in 2010 is 57,000

Amortization of past service cost 19,000

Expected return on plan assets 52,000

Unexpected loss from change in defined benefit obligation, due to change in actuarial predictions 76,000

Contributions in 2010 is 99,000

Benefits paid retirees in 2010 is 85,000

Instructions

(a) Using the data above, compute pension expense for BEST Co. for the year 2010 by preparing a pension worksheet that shows the journal entry for pension expense and the year-end balances in the related pension accounts.

(b) At December 31, 2010, prepare a schedule reconciling the funded status of the plan with the pension amount reported on the statement of financial position.