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Compute the pension exepnse for Howard Corp. for the year 2018 Howard Corp, sponsors a defined benefit pension plan for its employees. On January 1,

Compute the pension exepnse for Howard Corp. for the year 2018 image text in transcribed
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Howard Corp, sponsors a defined benefit pension plan for its employees. On January 1, 2018, the following balances related to this plan. Plan assets (fair value) $180,000 Projected benefit obligation 530,000 Pension asset/liability 50,000 C Prior service cost 68,000 OCI - Loss 58,000 As a result of the operation of the plan during 2018, the actuary provided the following additional data at December 31, 2018 Service cost for 2018 $63,000 Actual return on plan assets in 2018 34,460 Amortization of prior service cost 9,400 Contributions in 2018 108,000 Benefits paid retirees in 2018 73,000 Settlement rate 6% Expected return rate 7% Average remaining service life of active employees 10 years Annual Pension Expense General Journal Entries OCI-Prior Service Cost OCI - Gain/ Loss Penison Asset/ Liability Projected BC Obligatic Cash Interest cost > > v v Actual return v > > Unexpected gain V Amortization of PSC v v Amortization of loss Contributions Benefits Journal entry for 2018 > Interest cost > > v v Actual return v > > Unexpected gain V Amortization of PSC v v Amortization of loss Contributions Benefits Journal entry for 2018 >

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