Question
Coronado Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2017, the following balances related to this plan. Plan assets (market-related
Coronado Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2017, the following balances related to this plan.
Plan assets (market-related value) | $536,000 | ||
Projected benefit obligation | 652,000 | ||
Pension asset/liability |
| ||
Prior service cost | 86,000 | ||
Net gain or loss (debit) | 99,000 |
As a result of the operation of the plan during 2017, the actuary provided the following additional data for 2017.
Service cost for 2017 | $124,000 |
Actual return on plan assets in 2017 | 49,000 |
Amortization of prior service cost | 26,000 |
Contributions in 2017 | 144,000 |
Benefits paid retirees in 2017 | 88,000 |
Average remaining service life of active employees | 10 years |
Settlement rate, 9%; expected return rate, 10% |
Using the preceding data, compute pension expense for Coronado Corp. for the year 2017 by preparing a pension worksheet that shows the journal entry for pension expense. (Enter all amounts as positive.)?
Use the market-related asset value to compute the expected return and for corridor amortization
Expected Return | ?? |
Corridor Amortization | ?? |
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