Pillsbury Boys Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2021, the following balances related to this plan:

Plan assets (market-related value) 400,000

Projected benefit obligation 560,000

Pension asset/liability 160,000

Prior service cost 90,000

OCI - Loss 65,000

As a result of the operation of the plan during 2021, the actuary provided the following additional data at December 31, 2021:

Service cost for 2021 43,000

Actual return on plan assets in 2021 34,000

Amortization of prior service cost 18,000

Contributions in 2021 41,000

Benefits paid retirees in 2021 15,000

Settlement rate 6%

Expected return on plan assets 5%

Average remaining service life of active employees 8 years

INSTRUCTIONS:

PART A - Compute pension expense for Pillsbury Boys Corp. for the year 2021 by preparing a pension worksheet that shows the journal entry for pension expense.

PART B - Indicate the pension amounts reported in the financial statements.