Question
January 1, 2018 PBO:$2.3 million January 1, 2018 Plan Assets:$2.2 million January 1, 2018 Remaining Prior Service Cost:$500,000 Net Gain AOCI, January 1, 2018:$300,000 Average
January 1, 2018 PBO:$2.3 million
January 1, 2018 Plan Assets:$2.2 million
January 1, 2018 Remaining Prior Service Cost:$500,000
Net Gain AOCI, January 1, 2018:$300,000
Average Remaining Service Period for Active Employees:10 Years (Use for Amortization)
Service Cost for 2018:$100,000
Payments to Retirees in 2018:$150,000
Contributions to Plan Assets in 2018:$100,000
2018 Actual Return:9%; Expected Return:10%
Actuarial Discount Rate for Pension Plan:8%
1.What is the pension expense for 2018?
2.What is the balance of Plan Assets and of the PBO at December 31, 2018?
3.What is the journal entry to record pension expense for 2018?
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