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Madoff Company sponsors a defined-benefit pension pian for its employees. On January 1, 2017, the following balances related to this plan. Plan assets (fair value)
Madoff Company sponsors a defined-benefit pension pian for its employees. On January 1, 2017, the following balances related to this plan. Plan assets (fair value) Projected benefit obligation Pension asset/liability Prior service cost OCI-Loss $650,000 675,000 25,000 Cr. 120,000 72,000 As a result of the operation of the plan during 2017, the actuary provided the following additional data at Dec 31, 2017. Service cost for 2017 Actual return on plan assets in 2017 Amortization of prior service cost Contributions in 2017 Benefits paid retirees in 2017 Settlement rate Expected return rate Average remaining service life of active employees $32,000 35,000 5,025 45,000 28,000 6% 5% 20 years (a) Compute pension expense for Madoff Company for the year 2017 by preparing a pension worksheet [14 points] (b) Prepare the journal entry for pension expense [6 points
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