Instructions

1. Determine pension expense for 2020.

2. Prepare the 2020 journal entry to reflect pension activity for Helv Industries.

3. What is the Net Pension Asset/Liability at the end of 2020?

Helv Industries sponsors a defined-benefit pension plan for its employees. As of January 1, 2020, the pension plan reported a Projected Benefit Obligation of $1,334,000 and fair value of Plan Assets of $996,000. Helv also reports the following as of January 1, 2020: Dr (Cr) Net pension asset/liability $ (338,000) Accumulated other comprehensive income (AOCI) Prior service cost $ 100,000 Gains/Losses $ Additionally, the following information is available for 2020: Service cost $ 306,000 Actual return of plan assets $ 55,000 Amortization of prior service costs $ 5,000 Benefits paid to retirees $ 420,000 Contributions to the plan 285,000 Discount rate 10.0% Expected return rate 7.5%