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Problem 20-4 Gordon Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2012 and 2013. 2012
Problem 20-4
Gordon Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2012 and 2013.
| 2012 | 2013 | |||||
| Plan assets (fair value), December 31 | $699,000 | $849,000 | ||||
| Projected benefit obligation, January 1 | 700,000 | 800,000 | ||||
| Pension asset/liability, January 1 | 140,000 | Cr. | ? | |||
| Prior service cost, January 1 | 250,000 | 240,000 | ||||
| Service cost | 60,000 | 90,000 | ||||
| Actual and expected return on plan assets | 24,000 | 30,000 | ||||
| Amortization of prior service cost | 10,000 | 12,000 | ||||
| Contributions (funding) | 115,000 | 120,000 | ||||
| Accumulated benefit obligation, December 31 | 500,000 | 550,000 | ||||
| Interest/settlement rate | 9 | % | 9 | %
What is the pension exp for 2012 and 2013?
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