Exercise 20-12 Culver Company received the following selected information from its pension plan trustee concerning the operation of the company's defined benefit pension plan for the year ended December 31, 2017 January 1, 2017 $1,497,000 789,000 1,612,000 December 31, 2017 Projected benefit obligation Market-related and fair value of plan assets Accu $1,525,000 1,114,900 1,733,300 mulated benefit obligation Accumulated OCI (G/L)-Net gain (199,700 ) The service cost component of pension expense for employee services rendered in the current year amounted to $78,000 and the amortization of prior service cost was $121,300. The company's actual funding (contributions) of the plan in 2017 amounted to $247,000. The expected return on plan assets and the actual rate were both 1096, the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of $1,213,000 on January 1, 2017. Assume no benefits paid in 2017 Your answer is partially correct. Try again Determine the amounts of the components of pension expense that should be recognized by the company in 2017 (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 Service Cos $7800 nterest on Projected Benefit Obligation xpected Return on Plan Assets mortization of Prior Service Cos 49700 2130 70100 Your answer is correct. Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2017 (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 ension Expense 7270100 ? ension Asset/Liabilit 97900 as 47000 ther Comprehensive Income (PSC) 21300 199700 ther Comprehensive Income (G/L) To record pension expense and employer's contribution)