E20-3 (computation of pension expense) Veldre Company provides the following information about its defined benefit pension plan for the year 2017

Service cost $90,000

Contribution to the plan $105,000

Prior service cost amortization $10,000

Actual and expected return on plan assets $64,000

Benefits paid $40,000

Plan assets at 1/1/2017 $640,000

Projected benefit obligation at 1/1/2017 $700,000

Accumulated OCI(PSC) at 1/1/2017 $150,000

Interest/discount (settlement) rate 10%

Instructions:

Prepare a pension worksheet inserting January 1 2017 balances, showing December 31,2017, balances and the journal entry recording pension expense