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Q. The following information is provided regarding a companys pension plan: Service cost $ 640,000 Projected benefit obligation, Jan 1 $4,500,000 Fair value plan assets,

Q. The following information is provided regarding a companys pension plan:

Service cost $ 640,000

Projected benefit obligation, Jan 1 $4,500,000

Fair value plan assets, Jan 1 $3,750,000

Amortization of unrecognized prior service cost for the year $250,000

Interest cost 8%

Employer contribution to fund $845,000

Expected (and actual) return on plan assets 10%

Required:

Prepare the December 31 journal entry to record pension expense

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