Crane Company provides the following selected information related to its defined benefit pension plan for 2020.

Pension asset/liability (January 1)		$24,900	Cr.
Accumulated benefit obligation (December 31)		402,300
Actual and expected return on plan assets		10,900
Contributions (funding) in 2020		151,500
Fair value of plan assets (December 31)		805,100
Settlement rate		10	%
Projected benefit obligation (January 1)		697,100
Service cost		80,510

(a)

• Your Answer
• Correct Answer

Correct answer icon

Your answer is correct.

Compute pension expense.

Pension expense for 2020

$

Prepare the journal entry to record pension expense and the employers contribution to the pension plan in 2020. Preparation of a pension worksheet is not required. Benefits paid in 2020 were $29,500. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit

eTextbook and Media

Solution

List of Accounts

Attempts: unlimited

(b)

Indicate the pension-related amounts that would be reported in the companys income statement and balance sheet for 2020.

Crane Company Income Statement (Partial) December 31, 2020For the Year Ended December 31, 2020For the Quarter Ended December 31, 2020
DividendsOperating ExpensesNet Income / (Loss)Retained Earnings January 1, 2020Retained Earnings December 31, 2020RevenuesTotal ExpensesTotal RevenuesOther Revenue / Expenses
Amortization of PSCInterest ExpensePension ExpenseRent ExpenseService Cost		$
DividendsOperating ExpensesNet Income / (Loss)Retained Earnings January 1, 2020Retained Earnings December 31, 2020RevenuesTotal ExpensesTotal RevenuesOther Revenue / Expenses
Amortization of PSCInterest ExpensePension ExpenseRent ExpenseService Cost		$

Crane Company Balance Sheet (Partial) December 31, 2020For the Year Ended December 31, 2020For the Quarter Ended December 31, 2020
Current AssetsIntangible AssetsLong-term InvestmentsLiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Intangible AssetsTotal Long-term InvestmentsTotal Property, Plant and EquipmentTotal Stockholders' Equity
Accounts PayableAccounts ReceivableAccumulated DepreciationAccumulated Other Comprehensive Income (PSC)Accumulated Other Comprehensive Loss (PSC)Common StockPension LiabilityRetained Earnings			$