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Part IV: Watt Inc. sponsors a defined benefit pension plan for its employees. On January 1, 2017, the following balances relate to this plan. Plan
Part IV: Watt Inc. sponsors a defined benefit pension plan for its employees. On January 1, 2017, the following balances relate to this plan. Plan assets 4,316,000 Projected benefit obligation 4,300,000 Prior service cost (OCT) 840,000 Accumulated OCI - Loss 656,000 As a result of the operation of the plan during 2017, the following additional data are provided by the actuary. Service cost for 2017 523,000 Settlement & expected return rate 10% 510,000 12 Actual return on plan assets Average service life of all covered employees in years PBO on Dec 31, 2017, based on actuarial predictions Contributions in 2017 Benefits paid retirees in 2017 4,400,000 652,000 705,000 INSTRUCTIONS: (a) Using the data above, compute pension expense for the year 2017 by preparing a pension worksheet. (b) Prepare the journal entry for pension expense for 2017. (C) Compute the amount of net gains or losses to be amortized for 2017 and 2018
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