question 1

1) Reliance Corp. sponsors a defined-benefit pension plan for its employees. On January 1, 2020, the following balances related to this plan. Plan assets (fair value) 5 700,000 Projected benet obligation 680,000 Pension asset! liability 20,000 Dr. As a result of the operation of the plan during 2020, the actuary provided the following additional data at December 31, 2020. Price service cost (plan amended, 1/1/20). $120,000 Service cost for 2020 40,000 Actual return on plan assets in 2020. 60,000 Amortization of prior service cost 15,000 Contributions in 2020 115,000 Benets Paid retirees in 2020 80,000 Settlement rate 7% Expected return rate 10% Instructions (3) Compute pension expense for Reliance Corp. for the year 2020. (b) Compute the Project Benefit Obligation balance at 12/31/20. (c) Compute the Plan Assets balance at 12/31/20. (d) At 12/31/20, is Reliance Corp.'s pension plan overfunded or underfunded? By how much? (e) Prepare the12/31/20 journal entry for pension expense