Mangrove Corp. sponsors a defined benefit pension plan for its employees.

On January 1, 2017, the following balances related to this plan.

Balances or Values at January 1, 2017

Plan assets (market-related value)

$360,000

Projected benefit obligation

520,000

Accumulated OCI (PSC)

71,000

Accumulated OCINet loss (January 1, 2017 balance, -0-)

26,800

Pension asset/liability

160,000 Cr.

As a result of the operation of the plan during 2017, the actuary provided the following additional data at

December 31, 2017.

Service cost for 2017

$ 94,000

Settlement rate

6%

expected return rate

8%

Prior service cost amortization for 2017

21000

Actual return on plan assets in 2017

36000

Contributions to plan in 2017

80,000

Benefits paid

74,000

Average remaining service life of active employees

10 years

Instructions

Using the preceding data, compute pension expense for Mangrove Corp. for the year 2017 by preparing a

pension worksheet that shows the journal entry for pension expense.