Carolina Consulting Company has a defined benefit pension plan. The following pension-related data were available for the current calendar year: There were no other relevant data.

Required: 1) Calculate the 2013 pension expense. Show calculations. 2) Prepare the 2013 journal entries to record pension expense and funding. 3) Prepare any journal entries to record any 2013 gains or losses.

PBO: Balance, Jan. 1 Service cost Interest cost (5% discount rate) Gain from changes in actuarial assumptions in 2013 Benefits paid to retirees Balance, Dec. 31 $240,000 41,000 12,000 (5,000) (20.000) $268,000 Plan assets: Balance, Jan. 1 Actual return (expected return was $22,500) Contributions Benefits paid Balance, Dec. 31 $250,000 20,000 35,000 (20.000) $285,000 ABO, Dec. 31 $245,000 January 1, 2013, balances: Prior service cost-AOCI (amortization $4,000/yr.) Net gain-AOCI (amortization, if any, over 15 years) There were no other relevant data. 4,000 40,000