Exercise 20-11 (Part Level Submission) Crane Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2020 in which no benefits were paid. 1. The actuarial present value of future benefits earned by employees for services rendered in 2020 amounted to $55,800. 2. The company's funding policy requires a contribution to the pension trustee amounting to $153,710 for 2020. 3. As of January 1, 2020, the company had a projected benefit obligation of $905, 100, an accumulated benefit obligation of $802,900, and a debit balance of $397,900 in accumulated OCI (PSC). The fair value of pension plan assets amounted to $594,100 at the beginning of the year. The actual and expected return on plan assets was $54,200. The settlement rate was 10%. No gains or losses occurred in 2020 and no benefits were paid. 4. Amortization of prior service cost was $49,500 in 2020. Amortization of net gain or loss was not required in 2020. Your answer is correct. Determine the amounts of the components of pension expense that should be recognized by the company in 2020. (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45).) Components of Pension Expense T Service Cost 55800 T Interest on Projected Benefit Obligation | Expected Return on Plan Assets 90510 (54200) 49500 T Amortization of Prior Service Cost T Pension Expense 141610 SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT (b) Your answer is correct. Prepare the journal entry or entries to record pension expense and the employer's contribution to the pension trustee in 2020. (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 o for the amounts.) Account Titles and Explanation Debit Credit Pension Expense 1416101 Pension Asset/Liability 61600T Cash 153710 T Other Comprehensive I 49500 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT Attempts: 1 of 5 used Your answer is partially correct. Try again. Indicate the pension-related amounts that would be reported on the income statement and the balance sheet for Crane Company for the year 2020. Crane Company Indicate the pension-related amounts that would be reported on the income statement and the balance sheet for Crane Company for the year 2020. Crane Company Income Statement (Partial) For the Year Ended December 31, 2020 | Expenses 2 T Pension Expense | 141610 Crane Company Comprehensive Income Statement For the Year Ended December 31, 2020 T Net Income / (Loss) $XXXX T Other Comprehensive Income Amortization of PSC 49500 $XXXX T Comprehensive Income Crane Company Balance Sheet (Partial) December 31, 2020 T Liabilities T Pension Liability Crane Company Balance Sheet (Partial) December 31, 2020 Liabilities Pension Liability T Stockholders' Equity T Accumulated Other Comprehensive Income (PSC) A SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT
