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Pension data for a company include the following: Discount rate, 7% Expected return on plan assets, 11% Actual return on plan assets, 10% Service
Pension data for a company include the following: Discount rate, 7% Expected return on plan assets, 11% Actual return on plan assets, 10% Service cost, current year January 1, current year: ($ in thousands) $470 Projected benefit obligation Accumulated benefit obligation 3,100 2,800 Plan assets (fair value) 3,200 Prior service cost- AOCI (current year amortization, $45) 405 490 Net gain AOCI (current year amortization, $12) There were no changes in actuarial assumptions. December 31, current year: Cash contributions to pension fund, December 31, current year 405 Benefit payments to retirees, December 31, current year 430 Required: Determine pension expense for the current year. Prepare the journal entries to record (a) pension expense, (b) gains and losses (if any), (c) funding, and (d) retiree benefits for the current year.
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