E20-3 (Preparation of pension Worksheet) Verde 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 January 1, 2017 $640,000

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

Accumulated OCI (PSC) at January 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.