. Pension Worksheet. Howard Corp. sponsors a defined-benefit pension plan for its employees. On January 1, 2017, the following balances related to this plan.

Plan assets (market-related value)	450,000
Projected benefit obligation	600,000
Prior service cost (plan amended)	100,000
OCI Gain	85,000
Average remaining service life in years	10

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	75,000
Actual return on plan assets in 2017	45,000
Amortization of prior service cost	20,000
Contributions in 2017	115,000
Benefits paid retirees in 2017	70,000
Settlement rate	7%
Expected return rate	8%
Projected benefit obligation	780,000

Instructions

(a) Compute pension expense for Howard Corp. for the year 2017 by preparing a pension worksheet.

(b) Prepare the journal entry for pension expense.