Howard Corp. sponsors a defined-benefit pension plan for its employees. On January 1, 2013, the following balances related to this plan.

Plan assets (fair value)	$500,000
Projected benefit obligation	600,000
Pension asset/liability	100,000	Cr
Prior service cost	75,000
OCI - Loss	65,000

As a result of the operation of the plan during 2013, the actuary provided the following additional data at December 31, 2013.

Service cost for 2013	$ 75,000
Actual return on plan assets in 2013	45,000
Amortization of prior service cost	15,000
Contributions in 2013	115,000
Benefits paid retirees in 2013	80,000
Settlement rate	7%
Expected return rate	8%

Average remaining service life of active employees 10 years

Instructions

a. Compute pension expense for Howard Corp. for the year 2015 by preparing a pension worksheet.

(a) Howard Corp. Pension Worksheet-2013
	General Journal Entries Memo Record
	Annual Pension Expense	Cash	OCI-Prior Service Cost	OCI- Gain/Loss	Pension Asset/Liability	Projected Benefit Obligation	Plan Assets
Balance, Jan. 1, 2015
Service cost
Interest cost*
Actual return
Unexpected gain**
Amortization of PSC
Amortization of loss***
Contributions
Benefits
Journal entry for 2015
Accumulated OCI, Dec. 31, 2014
Balance, Dec. 31, 2015

b. Prepare the journal entry for pension expense.