Question
On December 31, 2020, Martin Company accumulated the following information for 2020 about its defined benefit pension plan: Service cost = $110,000 Interest cost on
On December 31, 2020, Martin Company accumulated the following information for 2020 about its defined benefit pension plan:
Service cost = $110,000
Interest cost on projected benefit obligation = $15,000
Expected return on plan assets = $10,000
Amortization of prior service cost = $2,000
On its December 31, 2019, balance sheet Martin had reported an accrued/ prepaid pension cost liability of $15,000.
Required
a. Compute the amount of Martins pension expense for 2020.
b. Prepare all the journal entries related to Martins pension plan for 2020 if it funds the pension plan in the amount of (a) $100,000, and (b) $120,000.
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