C

arolina Consulting Company has a defined benefit pension plan. The following pension-related data were available for the current calendar year:

PBO:
Balance, Jan. 1	$	235,000
Service cost		36,000
Interest cost (5% discount rate)		11,750
Gain from changes in actuarial assumptions in 2018		(4,500	)
Benefits paid to retirees		(15,000	)
Balance, Dec. 31	$	263,250

Plan assets:
Balance, Jan.1	$	245,000
Actual return (expected return was $22,000)		20,000
Contributions		30,000
Benefits paid		(15,000	)
Balance, Dec. 31	$	280,000
ABO, Dec. 31	$	239,500

January 1, 2018, balances:
Prior service costAOCI (amortization $5,075/yr.)	5,075
Net gainAOCI (amortization, if any, over 15 years)	50,750
There were no other relevant data.

Required: 1. Calculate the 2018 pension expense. 2. Prepare the 2018 journal entries to record pension expense and funding. 3. Prepare any journal entries to record any 2018 gains or losses.

Complete this question by entering your answers in the tabs below.

• Required 1
• Required 2
• Required 3

Calculate the 2018 pension expense. (Amounts to be deducted should be indicated with a minus sign.)