Case 2 (30%)

Xing Fu Ltd. sponsors a defined benefit pension plan for its employees. On January 1, 2019, the following balances related to this plan.

Plan assets (fair value)	1,300,000
Defined benefit obligation	1,750,000

Pension asset/liability	450,000	Cr.
Accumulated net loss	227,500

As a result of the operation of the plan during 2019, the actuary provided the following additional data on December 31, 2019.

Service cost for 2019	270,000
Discount (interest) rate	9%
Actual return on plan assets in 2019	120,000
Contributions in 2019	332,500
Benefits paid retirees in 2019	212,500

Instructions

Using the preceding data, compute pension expense for Xing Fu Ltd. for the year 2019 by preparing a pension worksheet that shows the journal entry for pension expense.