Exercise 20-4

The following facts apply to the pension plan of Boudreau Inc. for the year 2014.

Plan assets, January 1, 2014		$490,000
Projected benefit obligation, January 1, 2014		490,000
Settlement rate		8	%
Service cost		40,000
Contributions (funding)		25,000
Actual and expected return on plan assets		49,700
Benefits paid to retirees		33,400

Using the preceding data, compute pension expense for the year 2014. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2014 and the year-end balances in the related pension accounts.